Here's the XAUUSD update for November 29, 2023. Gold prices (XAU/USD) reached a nearly seven-month high of around $2,052 on Wednesday, although they saw a slight pullback before the European session. The US Dollar (USD) is recovering from its lowest level since August 11, as risk sentiment leans positive, limiting gold’s gains. Nonetheless, gold has maintained a five-day winning streak, poised for further appreciation as hopes grow that the Federal Reserve (Fed) will not raise interest rates.
 
Less hawkish comments from Fed Governor Christopher Waller overnight reinforced market confidence that the US central bank might begin easing its monetary policy in early March 2024. A disappointing US bond auction on Tuesday also kept yields below the 100-day Simple Moving Average (SMA) for US government bonds, limiting the USD’s recovery and supporting non-yielding gold prices.
 
Traders may remain cautious ahead of key US macro data releases, including the third-quarter GDP estimate expected to grow by 5%. While speeches from Fed members could influence USD demand, the main focus will stay on Thursday’s US inflation data, which could impact the Fed’s short-term policy and significantly affect gold prices.
 
Daily Market Movers Summary: Gold prices pause after hitting new multi-month highs.
 
  1. The US Dollar recovers from its three-and-a-half-month low, acting as a headwind for gold prices, although speculation of a Federal Reserve rate cut in 2024 continues to provide support.
  2. Fed Governor Christopher Waller mentioned on Tuesday that the central bank could begin cutting rates if inflation keeps easing in the coming months.
  3. Waller believes that current policy is sufficient to slow the economy and bring inflation back to the central bank's 2% target.
  4. Conversely, Fed Governor Michelle Bowman asserted that further rate hikes might still be necessary due to the dynamics keeping inflation high.
  5. The market expects the Fed to maintain its key lending rate in December, though officials emphasize caution over inflation.
  6. The Israel-Hamas truce has been extended for two more days, potentially influencing gold’s appeal as a safe haven.
  7. Hamas released around 50 hostages, and more releases are anticipated in exchange for the release of Palestinian prisoners by Israel.
  8. Traders await the preliminary US GDP report, which is expected to show 5% economic growth in the third quarter.
  9. Market focus shifts to Thursday’s US Core PCE Price Index, the Fed’s preferred benchmark for gauging long-term inflation trends.
 
Disclaimer!
 
This analysis, titled "XAUUSD Today: November 29, 2023 - Fed Dovish, Gold Rises!", is based on fundamental and technical views from trusted sources and is not an investment recommendation. Always remember that this content aims to provide readers with information. Conduct independent research before making any trading decisions.
 
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