{"id":73806,"date":"2023-11-27T15:57:07","date_gmt":"2023-11-27T13:57:07","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=73806"},"modified":"2025-12-10T15:41:15","modified_gmt":"2025-12-10T13:41:15","slug":"gold-continues-its-upward-ascend-for-a-third-week-in-a-row","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/ar\/gold-continues-its-upward-ascend-for-a-third-week-in-a-row\/","title":{"rendered":"Gold continues its upward ascend for a third week in a row"},"content":{"rendered":"

Gold at the time of this report, seems to be moving in an upwards fashion, compare to last week’s gold outlook<\/a>, as market expectations of a pause by the Fed appear to be increasing, which may incentivize investors to re-allocate funds to the precious metal. In addition, we note that external shocks in the gold market, appear to have all but vanished, with financial releases stemming from the US to be in the spotlight. In this report, we aim to shed light on the catalysts driving gold\u2019s price, assess its future outlook, and conclude with a technical analysis.<\/p>\n\n\n\n

Gold Market Report<\/strong><\/h2>\n\n\n\n

Dovish Fed?<\/strong><\/h3>\n\n\n\n

The precious metal during today\u2019s trading session, managed to print 6-month highs, as the market anticipation that the Fed may have reached its terminal rate appears to have been growing over the past week. The anticipation that the Fed may be done with rate hikes, appears to have aided gold\u2019s ascent, given the precious metal\u2019s inverse relationship with the greenback. <\/p>\n\n\n\n

However, when we compare gold and the Dollar Index, it appears that their relationship may be disproportional, yet nevertheless still remains present. As such, despite optimism that the Fed may be done hiking interest rates, gold\u2019s ascent may be attributable also to other factors explored in this report.<\/p>\n\n\n\n

US Core PCE rates to drive gold\u2019s direction.<\/strong><\/h3>\n\n\n\n

This week is expected to have key financial releases from the US, in terms of the Core PCE rates which is the Fed\u2019s favourite tool for measuring inflation. The Core PCE rates for October are expected to come in at 3.5%, which is lower on a year-on-year basis if compared to September, therefore the anticipation that inflationary pressures may be easing, could be pre-emptively generating market optimism that the Fed may be done raising interest rates. As such, should the expected Core PCE rate materialize or come in lower than expected, we may see gold capitalizing on a weaker dollar, whilst should it take market participants by surprise and accelerate, we may see gold weakening, as the greenback strengthens, given their inverse relationship. <\/p>\n\n\n\n

Nevertheless, we would also like to remind our readers of the precious metal\u2019s role, as an inflation-hedging instrument, which may distort its reaction to the financial release. Moreover, please note that the release of the US Revised GDP rate for Q3 is also due to be released earlier on in the week and may also enhance the negative correlation between the dollar and the precious metal.<\/p>\n\n\n\n

First Batch of RBI’s Sovereign Gold Bonds Set to Mature on November 30th<\/strong><\/h3>\n\n\n\n

According to the Economic Times of India, the first batch of Sovereign Gold Bonds (SGB\u2019s) which were issued in November 2015, are set to mature on the 30th<\/sup> of November. According to the article, the return from the first issuance of the SGB\u2019s is expected to be around 12%, which may spur increased demand for gold in the market and as such could push the precious metal\u2019s price higher should we see a significant increase in demand. <\/p>\n\n\n\n

However, for any material impact to occur on the price of gold, the interest by large institutions would have to be significant enough in terms of capital, which does not appear to be the case at this point in time. Nevertheless, we highlight this issue and traders may keep it in mind.<\/p>\n\n\n\n

Gold – Technical Analysis<\/strong><\/h2>\n\n\n\n

XAUUSD 4-Hour Chart<\/em><\/strong><\/h3>\n\n\n\n
\"Delve<\/figure>\n\n\n\n