Gold Price Talking Points
The opening range for December is in focus for the price of gold[1] amid the limited reaction to the recent US data prints, but the precious metal may face a further decline over the coming days if it fails to defend the November low ($1759).
Gold Price to Face Further Losses on Failure to Defend November Low
The price of goldbounces back from the weekly low ($1770) in an attempts to retrace the decline following the testimony from Federal Reserve Chairman Jerome Powell[2], and bullion may consolidate over the coming days as it appears to be unfazed by the uptick in the ISM Manufacturing survey.
Nevertheless, the rebound in business sentiment may put pressure on the Federal Reserve to implement higher interest rates sooner rather than later as the ISM index climbs to 61.1 from 60.8 in October, and it remains to be seen if the central bank will adjust the forward guidance at its next rate decision on December 15 as Chairman Powell and Co. are slated to update the Summary of Economic Projections (SEP).
Until then, the price of gold may move to the beat of its own drum as the larger-than-expected uptick in the US Consumer Price Index (CPI)[3]pushes market participants to hedge against inflation, and signs of stronger price growth may prop up the price of gold as longer-dated US Treasury yields struggle to retrace the decline from earlier this year.
With that said, the opening range for December is in focus for the price of gold as it attempts to recoup the losses from earlier this week, but bullion may face a further decline over the coming days if it fails to defend the November low ($1759).
Gold Price Daily Chart
