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MENAFN- Daily Forex)
The decline in the US dollar helped the gold price rebound, gaining to a resistance level of $2658 per ounce during yesterday's Wednesday session before stabilizing around $2635 per ounce at the time of writing this analysis on Thursday. Today's trading will be within narrow ranges due to the US holiday, which affects market liquidity, and as a result, investors are staying away from trading screens.
Gold Price Forecast in the Coming Days
According to gold trading platforms, the gold price is stabilizing as investors continue to assess the latest set of US economic data. According to economic calendar data, both personal consumption expenditures and core personal consumption expenditures showed that US inflation progress has slowed, reinforcing the Federal Reserve's cautious stance on further US interest rate cuts. Additional data indicated that the US economy remains strong, according to the second estimate of third-quarter GDP growth, while US employment data showed continued resilience in the Labor market, with the number of Americans filing for unemployment benefits falling below expectations. Overall, this data has limited the Federal Reserve's room to cut US interest rates in 2025.
On another front affecting the gold market, regarding geopolitical tensions, traders continued to monitor developments in the Middle East. While the recent ceasefire agreement between Israel and Hezbollah has reduced gold's appeal as a safe haven, uncertainty remains.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money The Dollar Maintains Losses Ahead of Holidays
During today's trading, the US Dollar Index (DXY) maintained its recent decline at the 106.1 level, amid low trading volume due to the US Thanksgiving holiday. The dollar price was negatively affected after US personal consumption expenditure inflation data was in line with expectations, indicating little change in US interest rate expectations. Concurrently, financial markets are betting with a 66.5% probability that the Federal Reserve will cut US interest rates by 25 basis points in December, up from 55.7% the previous week.
Also, the upward performance of the US dollar faced pressure from the announcement of the nomination of Scott Bisente as US Treasury Secretary. Obviously, that provided a sense of stability to the markets and reduced expectations of aggressive tariff policies under Trump's leadership Stock Indices Decline
Ahead of the US Thanksgiving holiday, US stock market indices closed lower during yesterday's session as investors took profits after strong gains in November and assessed the latest economic data. According to stock trading platforms, the S&P 500 and Dow Jones indices retreated from their previous record highs, falling by 0.4% and 0.3%, respectively. Meanwhile, the Nasdaq 100 saw a sharper decline, losing 0.8%. Technology stocks led the decline, with shares of Nvidia, Meta, and Microsoft falling by 1.1%, 0.7%, and 1.2%, respectively, while shares of Dell and HP fell by more than 11% each due to weak earnings guidance Price Technical Analysis Today:
EURUSD Chart by TradingView
According to today's gold analysts' forecasts, as is clear from the daily chart performance, the gold price index is in a neutral position. Thus, it will be more inclined to rise if the bulls succeed in moving towards resistance levels of $2660, $2685, then the psychological resistance of $2700 per ounce. Technically, the Relative Strength Index (RSI) is in a neutral position awaiting momentum to determine the direction. Also, the MACD indicator is at the beginning of an upward turn.
We still recommend buying gold from every downward level. Decisively, with working with a no-risk trading strategy and activating profit and stop loss orders to ensure the safety of the trading account from any sudden price reversals. Currently, the closest support levels for gold prices are $2,610, $2,565, and $2,525 per ounce, respectively.
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