Last month, the gold market witnessed a decline in the prices after touching the $1515 mark. However, this months shows promising signs of recovery. Gold touching the psychological $1500 price point seems highly probable. The latest updates on the US-Sino trade dispute continues to act as the strongest driver for gold price volatility.
US-Sino Deal Update
As per the latest report, President Trump has scheduled to implement tariffs on the Chinese counterpart on December 15 unless a deal is reached before then. President added that they might have to wait until late 2020 to end the trade issues.
Meantime, the Chinese showcased anger against the Uighur bill passed by the US Democratic-controlled house, furthering worsening the status quo. China proclaimed that the US might face serious repercussions on meddling with its internal affairs.
Anyhow, the Chinese economy has reported the slowest pace in the last three years amid escalated trade tensions. Amid such a trade deal uncertainty, investors might continue to shift towards hard assets in the coming sessions.
US Dollar Index on 4th December
On the USD Index side, the overall intraday volatility might remain neutral after two sessions of heavy downfalls. Stochastic Indicator was pointing towards the oversold territory, highlighting the lack of momentum in the index. Also, a couple of days back, the US Dollar broke a critical slanting support region.
Despite that, the DXY might take the chance to move to the upper side, depending on the future data. In that case, the Index must breakout from the overhead red Ichimoku clouds.
Today, traders might eye on the significant November ISM Non-Manufacturing PMI data release. Analysts are expecting a a reading of 54.5 versus the previous 54.7 points.
Although the XAUUSD pair had slid down earlier across the centerline of the Bollinger bands, upward price action still seems to remain intact. The pair bounced yesterday after hitting a 5-month old slanting support. Now, a further surge in bids might encourage the bulls to upshoot, regaining hold of $1500 level.
Coming down to the daily chart, the momentum growth above the 50 mark in the Stochastic Oscillator technical indicator sets a highly bullish prospective. Also, a bullish crossover in the Moving Averages Convergence Divergence (MACD) indicator confirms the bet to the upside.
However, a breakout above the strong resistance confluence region around the $1500 level would be a necessary to see a meaningful upside.