The XAUUSD (Gold) market is currently in a directional bearish auction, with prices trading near 3,845. This follows a move away from a previous higher distribution, and the market remains below a broken rising auction support. This indicates that lower prices are still being accepted, rather than a significant reversal occurring.
The macroeconomic backdrop continues to be restrictive for gold. While October U.S. PPI data was slightly below forecasts month-on-month, annual producer inflation accelerated to 6.5%, its highest point since November 2022. Although market expectations for a December Fed rate hike were adjusted, a 25 basis point increase is still largely anticipated. Gold is on track for a substantial weekly decline, its worst in approximately four months, coinciding with a strong dollar and rising Treasury yields.
Current trading activity between 3,835–3,855 suggests ongoing discovery of lower prices. Key levels to watch include 3,885–3,905 for a potential value reclaim and sustained two-way trade, and 3,815–3,830 as immediate lower value. The broader lower distribution is situated around 3,735–3,755. Seller acceptance has been dominant in the market.
This information is based on a report by Tradingview.
