autosignalfx
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Gold (XAU/USD) Analysis: Upside Momentum Persists Above Key EMA, Eyes on CPI Data
Gold prices edged higher in early European trading on Monday, climbing above $4,050 as renewed concerns over the US economic outlook fueled safe-haven demand. Weak private payroll data and a soft University of Michigan Consumer Sentiment Index have strengthened expectations for a December rate cut, lowering the opportunity cost of holding non-yielding assets like gold.
However, optimism surrounding a possible US government shutdown resolution could partially cap gains. Lawmakers are reportedly close to a deal that would fund several government departments through January 30. Meanwhile, China’s temporary suspension of export controls on critical metals has eased global trade tensions, reducing some of gold’s safe-haven appeal.
Investors now turn their focus to US CPI data on Thursday and Retail Sales figures on Friday, which could shape short-term rate expectations and influence gold’s next directional move.
Technical Outlook
Gold remains bullish above the 100-day EMA, with the RSI near 55, signaling steady upward momentum. A sustained move above the October 22 high of $4,161 could open the door toward the $4,200 psychological zone, followed by the upper Bollinger Band near $4,325.
Conversely, failure to hold above $4,000 may trigger a correction toward the lower Bollinger Band at $3,835, and further down to the 100-day EMA near $3,705.
📈 Next Targets:
Upside: $4,161 → $4,200 → $4,325
Downside: $4,000 → $3,835 → $3,705
Bias: Bullish while holding above $4,000
Gold prices edged higher in early European trading on Monday, climbing above $4,050 as renewed concerns over the US economic outlook fueled safe-haven demand. Weak private payroll data and a soft University of Michigan Consumer Sentiment Index have strengthened expectations for a December rate cut, lowering the opportunity cost of holding non-yielding assets like gold.
Investors now turn their focus to US CPI data on Thursday and Retail Sales figures on Friday, which could shape short-term rate expectations and influence gold’s next directional move.
Technical Outlook
Gold remains bullish above the 100-day EMA, with the RSI near 55, signaling steady upward momentum. A sustained move above the October 22 high of $4,161 could open the door toward the $4,200 psychological zone, followed by the upper Bollinger Band near $4,325.
Conversely, failure to hold above $4,000 may trigger a correction toward the lower Bollinger Band at $3,835, and further down to the 100-day EMA near $3,705.
📈 Next Targets:
Upside: $4,161 → $4,200 → $4,325
Downside: $4,000 → $3,835 → $3,705
Bias: Bullish while holding above $4,000
