The price of gold (XAU/USD) on Thursday continued to trade in a consolidative pattern formation very close to $1,450 in a thinly traded market on the Thanksgiving holiday. The price fo the yellow metal has been trading in a consolidative triangle formation since early this month and this seems set to carry on through Friday.
The gold price plunged at the start of the month and has since failed to fashion a serious recovery attempt amid increased market optimism, which puts pressure on gold prices.
Gold Price Fundamentals Overview
The price of gold is trading at the back of a relatively calm period in the US market. However, there was a lot to report on Thursday from the rest of the world. In Europe, the Swiss GDP for Q# beat expectations on both (QoQ) and (YoY) basis while in Spain, the preliminary Consumer Price Index for November also impressed beating the expectations of 0.1% and 0.2% (MoM) and (YoY) respectively with 0.2% and 0.4%.
On the other hand, the UK National Housing Prices outperformed the expectations of 0.1% (MoM) and 0.2%(YoY) with 0.5% and 0.8% respectively. In the EU, Industrial Confidence Index and Business Climate missed expectations with -9.2 and -0.23, respectively versus -9.1 and -0.14.
In the previous day, the US Chicago Purchasing Manager’s Index missed expectations while initial and continuing jobless claims beat with 213k and 1.64M versus 221k and 1.69M, respectively.
Gold Price Technical Analysis (the 60-min Chart)
Technically, the price of gold appears to be trading within a consolidative triangle formation with a relatively flat base compared to the trendline top. This indicates a bearish bias in the short-term market sentiment.
Therefore, the bears will be targeting short-term profits at around $1,452 or lower at $1,445 while the bulls will look to pounce by targeting profits at around $1,460 or higher at $1,465 going into Friday.
Gold Price Technical Analysis (the Daily Chart)
In the daily chart, the price of the yellow metal appears to be trading within a sharp diving triangle formation, which indicates the existence of intense bearish pressure in the long-term market sentiment.
Therefore, the bears will look to target long-term profits at around $,445, $1,428 or lower at $1,410. On the other hand, the bulls will hope for a quick rebound towards $1,489, $1,518, or higher at $1,536.