On Wednesday (November 22nd) in the European market, spot gold maintained its intraday rebound trend, with gold prices currently around 2003 US dollars per ounce. FXStreet analyst Dhwani Mehta wrote on Wednesday that gold is focused on US economic data in search of new boosts.
Mehta wrote that on Wednesday, gold prices worked hard to maintain their previous bullish momentum, trading near the $2000/ounce mark, waiting for the release of a new round of key US economic data to find new clues about the Fed's interest rate outlook.
Mehta pointed out that from the gold daily chart, there is a "bullish crossover" in the technical aspect, so gold prices are expected to further rise.
Mehta said that later on Wednesday, gold traders will be looking forward to US durable goods orders, initial jobless claims, and consumer confidence data from the University of Michigan to look for new signs of US economic strength, which may have a significant impact on the policy outlook of the Federal Reserve and the trend of the US dollar, ultimately affecting gold prices.
At 21:30 Hong Kong time on Wednesday, the initial value of durable goods orders in the United States for October will be released, with an expected monthly rate decrease of 3.1%, after a 4.6% increase in September.
At 21:30 Hong Kong time on Wednesday, the data on the number of initial claims for unemployment benefits in the United States for the week after the quarterly adjustment on November 18th will be released, expected to be 226000. Previously, the number of initial claims for unemployment benefits for the week on November 11th increased by 13000 to 231000.
At 23:00 Hong Kong time on Wednesday, the final value of the University of Michigan Consumer Confidence Index for November in the United States will be announced, expected to be 60.6, compared to the initial value of 60.4.
Analysts pointed out that if the US economic data performs less than expected, the US dollar may be hit, driving gold prices further stronger.
Mehta warned that the market may also adjust its position before the Thanksgiving holiday, so gold prices may experience a surge in volatility during the temporary closing.
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Mehta stated that after the 50 day Simple Moving Average (SMA) closed above the 100 day moving average on Tuesday, gold prices showed a bullish cross on the daily chart.
The relative strength index (RSI) on the 14th was much higher than the median, indicating that bullish potential still exists, and every correction in gold prices may be seen as a buying opportunity.
Mehta said that if gold prices close above the $2000/ounce mark on a daily basis, it could trigger a new round of upward trend and reach a multi month high of $2009/ounce. The next upward target for gold prices is expected to be at a high point in mid May (around $2020 per ounce).
On the downside, Mehta pointed out that gold sellers need to conquer the 21 day moving average of $1975 per ounce in order to consolidate their strength towards the $1955-1950 per ounce region.
If gold prices continue to fall below $1950 per ounce, the November 14th low of $1944 per ounce may be put to the test, followed by the 200 day moving average of $1939 per ounce.
