Here is the update on XAUUSD news today, December 1, 2023. Gold prices (XAU/USD) remain stable in the European session after receiving new buying interest on Friday, although there was no follow-through. The precious metal is still near its highest level since May 5, currently trading around $2,041-$2,042, up 0.25%.
 
US economic data released last Thursday showed reduced inflationary pressures, reinforcing speculation that the Federal Reserve (Fed) will maintain interest rates and may lower them in 2024, supporting gold as a safe-haven asset. Mixed economic signals from China also influenced investor sentiment.
 
However, John Williams and Mary Daly from the Fed dismissed expectations for a rapid change in interest rates, limiting the impact on the US Dollar and XAU/USD. Traders are awaiting the ISM Manufacturing PMI and Fed Chair Jerome Powell's speech for further signals.
 
Daily Market Movers Summary: Gold prices are supported by the Fed's dovish stance and weakening USD demand.
 
  1. Support continues for gold prices considered safe-haven, as it is expected that the Federal Reserve will not raise interest rates and may ease its monetary policy in the first half of 2024.
  2. CME's FedWatch tool indicates a possibility of interest rate cuts by the Fed in March 2024, with nearly an 80% chance of this action at the May FOMC meeting.
  3. Key inflation data released last Thursday, particularly the Personal Consumption Expenditures (PCE) Price Index, confirmed these predictions, showing stagnation in October.
  4. The PCE Price Index recorded the smallest year-over-year increase since March 2021, dropping from 3.4% to 3.0% in the reported month.
  5. The index excluding food and energy rose by 0.2% in October, with a year-on-year increase of 3.5%, indicating signs of easing inflation.
  6. Another report noted an increase in initial jobless claims to 218,000 last week and the largest number of people receiving unemployment benefits in two years.
  7. New York Fed President John Williams emphasized the need to maintain a restrictive stance to bring inflation back to the 2% target.
  8. San Francisco Fed President Mary Daly believes interest rates are in a good position to control inflation, although she has not decided whether there will be a hike.
  9. Fed Chair Jerome Powell's speech is the focal point for the market, potentially causing volatility and providing a fresh impetus for XAU/USD.
  10. The ISM Manufacturing PMI release is also a highlight for traders, expected to rise to 47.6 in November, but still within contraction territory for the twelfth consecutive month.
 
Technical Analysis: Gold prices consolidate below multi-month peaks, but bullish potential remains strong.
 
From a technical perspective, any subsequent rise may face resistance around $2,052, the multi-month peak. With daily chart oscillators remaining positive, further buying action could trigger new momentum, pushing gold prices toward all-time highs around the $2,079-$2,080 zone reached in May.
 
Yesterday's swing low around $2,030 could serve as the nearest support before reaching the $2,020 zone and the strong horizontal resistance breakout point of $2,010-$2,008. These levels are crucial, and if breached, they could trigger technical sell-offs, driving gold prices below the psychological level of $2,000 toward the next support in the $1,990 area.
 
Warning!
 
This analysis of "XAUUSD Today: December 1, 2023 - Global Gold Prices Stalled" is based on insights from fundamental and technical perspectives from trusted sources and does not constitute advice or an invitation. Always remember that this content aims to enrich readers' information. Always conduct your own independent research regarding other forex information to use as a reference in your trading.
 
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