Gold price is currently mirroring movement in the US dollar whilst being subjected to the outcome of the G20 summit meeting, as investors look to see how the US-China trade dispute will unfold alongside other geopolitical tensions.
November 30, GKFX – Gold lacked any firm directional bias and was seen oscillating in a narrow trading band through the early European trading session on Friday.
The precious metal stalled two-day-old goodish recovery from two-week lows and pared early gains to fresh weekly tops after minutes from the latest FOMC meeting reaffirmed prospects for another rate hike in December.
Focus is on G-20 Summit
The minutes partly offset Wednesday’s dovish sounding comments by the Fed Chair Jerome Powell and extended some support to the US Dollar, which further collaborated towards capping gains for the dollar-denominated commodity.
With the greenback sticking to its mildly positive tone on Friday, the prevalent risk-off mood, ahead of the key Trump-Xi meeting on the sidelines of the G-20 summit in Argentina, extended some support to the precious metal’s safe-haven status.
A slight deterioration in investors’ appetite for riskier assets was further reinforced by a weaker tone surrounding the US Treasury bond yields, which further collaborated towards limiting any sharp downfall for the non-yielding yellow metal.
Gold Price Technical Forecast
The $1227-28 zone might continue to act as an immediate strong hurdle, above which the commodity is likely to aim towards testing $1234-35 supply zone before eventually darting towards Oct. monthly swing highs, around the $1243 region.
On the flip side, immediate support is pegged near the $1221 horizontal zone, which if broken is likely to accelerate the fall further towards $1215 horizontal zone en-route $1212-11 strong support.
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