Gold price braces for the second consecutive weekly gain despite sluggish trading ahead of the Federal Reserve’s (Fed) favorite inflation gauge, namely November’s US Core Personal Consumption Expenditure (PCE) Price Index. In doing so, the XAUUSD pokes a two-week-old ascending resistance line, around $2,055 by the press time. Apart from the stated trend line resistance, the overbought RSI (14) and sluggish MACD signals also challenge the bullion buyers. Hence, strong data can push back the bullish bias by dragging the quote towards the immediate support, namely the 50-SMA level surrounding $2,020. It’s worth noting, however, that a six-week-old upward-sloping trend line near $1,995 will give the final fight to the sellers before giving them control.
On the contrary, an upside break of $2,055 could quickly propel the Gold buyers toward targeting the $2,080 and the $2,100 resistance levels. It should be observed that such a strong run-up needs too weak US data and should allow the traders to ignore the overbought RSI, which in turn appears less likely. However, a clear upside break of $2,100 won’t hesitate to print the fresh all-time high, currently around $2,050, even during the year-end lackluster trading.
Overall, the Gold buyers appear running out of steam ahead of this week’s key data, suggesting a pullback move in the commodity. However, the economics need to justify the market’s expectations of multiple rate cuts in 2024, failing to do so won’t do much harm to the XAUUSD price.
