

This week, gold held slightly above $4,200 in a turbulent, consolidative range as traders positioned ahead of the postponed September PCE data. Gold has maintained a buy due to the dollar's weakening near a five- week low, while downside interest has been restrained by continued predictions of another 25-bp rate drop next week. While unemployment claims declined to 191,000 in November, private payrolls fell by 32,000. This decline was skewed by the holiday week, but it nevertheless supported forecasts for policy easing. A quarter-point decrease is priced with around 90% confidence in futures markets. With the 10-year at 4.102%, this bias has exceeded Thursday's yield increase. The Fed has already lowered rates at its last two sessions despite stickier inflation, and members continue to express concern about a deteriorating labor market.
MCX Gold February contract has continued to incline for the 4th consecutive week, posted a mild surge of 0.63% and managed to settle at 130,419 in past week. Price has made an effort to peak of 131,539 ahead of Fed rate announcement, however experienced sell-off from peak. On Weekly chart, price has made a Bullish Spinning top candle and price has continued to move above its all key moving averages i.e. 20, 50 and 100- DEMA levels placed at 126222, 122055 and 115470. Here, key resistance would be at previous ATH level i.e. 132,294 and breakout of this level will accelerate upward momentum in Gold price ahead to 134,500.
We can observe a mild rise in Ol levels to 13,050 lots in Friday's session along with a price-rise which signifies a strength in a bullish momentum. Dollar Index has remained weaken for second week, made a dip at 98.41 which will provides add-on strength to Gold price.
The overall trend in Gold price is expected to be Moderately Bullish in the coming week, and traders should keep an eye on key US economic data such as Job openings, Employment cost index, unemployment claims along with announcement of Fed rate which are scheduled to be release in next week.
| Support 2 | Support 1 | CMP | Resistance 1 | Resistance 2 |
|---|---|---|---|---|
| 126,222 | 128,000 | 130,419 | 132,294 | 134,500 |
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Prediction given by Technical Research Team - Choice.



