The yellow metal recorded gains in yesterday's session, breaching the $1500 level to register a high of $1513 amidst greenback weakness as the U.S inflation target remains undershot and wage growth stalls, casting doubts on consumers' ability to continue driving the economy amid a deepening slump in business investment. Both USD core PCE (Personal Consumption Expenditures) and USD Chicago PMI figures released yesterday came in below expectations at 0% vs. 0.1% and 43.2 vs. 48 respectively, while Initial Jobless Claims for October increased by 5000 vs. a forecast of 215k. Expecting today's session to be volatile as the market awaits the release of USD Non-Farm Payrolls (Oct), USD unemployment rate and the ISM Manufacturing PMI, among other releases.
Gold ended yesterday's session in the green after a bullish run confirming the $1514 resistance level to retrace and close at $1512. Bullish momentum is building up on the yellow metal as the 50-period SMA begins to cross the 200-period SMA on the 4H chart, with $1507 as the line in the sand for today's session. Failing to retrace to the $1507 level will push price higher with targets at our respective resistance levels
Support: 1503.11 / 1496.89
Resistance: 1514.13 / 1523.38