#黄金Technical analysis#24K99讯 During the New York trading session on Wednesday (November 27), spot gold staged a “high platform diving” scene. The price of gold fell sharply by nearly $25 from its intraday high. Analysts pointed out that after the data showed that progress in inflation had stagnated, the price of gold returned most of the increase in early trading because this data may make the Federal Reserve cautious about further interest rate cuts.

In early trading in New York on Wednesday, the price of gold once hit 2658.29 US dollars/ounce, the highest level of the day. However, the price of gold then fell sharply, to a minimum of 2633.77 US dollars/ounce.

(30 minute chart of spot gold source: 24K99)

As of Wednesday's close, the price of gold rose only slightly by 0.1% to close at $2635.87 per ounce.

In terms of Wednesday's economic data, US durable goods orders increased 0.2% month-on-month in October. Although they did not meet expectations of 0.5%, they improved from the 0.4% decline in September.

The number of jobless claims in the US stabilized at 0.213 million at the beginning of the week of November 23, lower than the forecast of 0.217 million.

The revised US real gross domestic product (GDP) annualized quarterly rate for the third quarter was the same as the initial value, at 2.8%, and the growth rate was slower than 3% in the second quarter. However, the GDP report still shows that the US economy is still resilient. Of the past nine quarters, the GDP growth rate was over 2% in eight quarters.

According to a report released by the US Department of Commerce, the Federal Reserve's favorite inflation index rebounded in October compared to September. This data supports the position of Federal Reserve officials taking a more cautious attitude towards future interest rate cuts.

The Federal Reserve's favorite inflation indicator, the core personal consumption expenditure (PCE) price index, which excludes highly volatile food and energy, rose 2.8% year on year in October, the highest level since April this year. The increase was in line with expectations, and rose 2.7% in September. Furthermore, the core PCE price index rose 0.3% month-on-month in October, in line with expectations.

The PCE price index rose 0.2% month-on-month and 2.3% year-on-year in October, both of which were in line with the predictions of analysts surveyed by the Dow Jones. The year-on-year increase in the PCE index in October was higher than the 2.1% level in September.

Phillip Streible, chief market strategist at Blue Line Futures, believes that the main driving force behind the gold price correction comes from rising personal income.

According to Wednesday's data, personal income in the US increased 0.6% month-on-month in October, which was significantly higher than the expected 0.3% increase.

Streible said, “If consumer income increases and can respond more flexibly even in the face of higher inflation, then the Federal Reserve may be even less willing to cut interest rates drastically.”

The minutes of the November monetary policy meeting released by the Federal Reserve on Tuesday show that although Fed officials said they expect to continue to cut interest rates in the future, they said the pace of interest rate cuts will occur “gradually.”

The gold market has been volatile this week. Gold recorded its biggest one-day decline in more than five months on Monday due to Israel and Iran-backed Hezbollah announcing a cease-fire and reducing safe-haven demand. Gold prices fell to their lowest point since November 18 on Tuesday.

Meanwhile, before US personal income and PCE data were released on Wednesday, gold prices surged 1% during the day.

Hamad Hussain, an assistant economist at Capital Economics (Capital Economics), said on Wednesday: “Judging from today's price trends, gold prices may fluctuate even more in the short term before Trump takes office and the situation in the Middle East continues to develop.”

How to trade gold?

FXStreet analyst Christian Borjon Valencia pointed out that after sellers pushed the price of gold below the $2,700 per ounce mark, the outlook for gold prices was neutral to bearish. Gold is creating a series of consecutive lower highs and lows.

According to Valencia, likeRelative strength index(RSI) Such oscillatory indicators have turned bearish, indicating that sellers are in control of the situation.

On the trading side, Valencia said that if bears push the price of gold below $2,600 per ounce, it will open the door for testing the 100-day moving average of 2,568 US dollars/ounce, followed by a volatile low of 2,536 US dollars/ounce on November 14.

(Spot gold daily chart source: FXStreet)

On the upside, Valencia added that if gold bulls recover the 50-day moving average of $2,667/oz, this could pave the way for gold to challenge $2,700 per ounce. If it breaks through this level, the gold price will next target the psychological level of 2,750 US dollars/ounce and the historical high of 2,790 US dollars/ounce.