Gold surpasses $2,000/ounce in week's start

Markets anticipate Jerome Powell's speech

By Raed Alkhedr | @raedalkhedr | 27 November 2023

  • US dollar weakens against major currencies and commodities

  • US manufacturing PMI shows a negative trend

  • Markets prepare for key economic data this week

In the realm of gold movements, significant economic events have left their mark:

The week began with gold on an upward trajectory, breaking the $2,010 per ounce threshold as the US dollar weakened against major currencies and commodities.

Contributing to the dollar's decline is the adverse data from the Purchasing Managers' Index (PMI) for the US manufacturing sector. The latest figures indicate a contraction phase, registering at 49.4 points, below market expectations of approximately 49.9 points. It's noteworthy that the preceding manufacturing PMI was at the 50-point level. Conversely, the Purchasing Managers' Index for the services sector reflects growth, reaching 50.8 points in November compared to October's 50.6 points.

Anticipation is high in the markets for key economic data releases this week, notably the Gross Domestic Product (GDP) data for the United States and the release of the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation indicator.

In trading, the precious metal has seen a substantial increase in the early week sessions, hovering around the $2,012 per ounce mark.

Key pivotal and technical levels influencing gold movements are as follows:

Gold has successfully breached the $2,008.00 resistance level, extending its ascent to a peak of $2,018.00 today. The next move is likely to test the upper boundary of the ascending channel around the $2,030.00 level. A breakthrough here could propel gold towards the $2,045.00 level.

On the flip side, if a retreat occurs from current levels, gold may find support around $2,008.00. A drop below this level could see support at the lower boundary of the ascending channel around $2,000.00, crucial for confirming an upward trajectory. Falling beneath this level might signal a continuation of the downward trend towards the $1,987.00 level.

Gold 27-11-2023