Partner Center Find a Broker

With not a lot of data on tap, traders could continue to trade the possibility of a Fed slowdown.

Will spot gold (XAU/USD) bounce from a short-term resistance today?

Before moving on, ICYMI, yesterday’s watchlist looked at NZD/JPY’s rising channel ahead of New Zealand’s retail sales report. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

NZ retail sales improve from -2.2% to a 0.4% q/q growth in Q3

Tokyo’s inflation up by 3.6% y/y in November, the fastest pace in 40 years

China central bank to offer cheap loans to support developers’ bonds

Dollar headed for weekly loss as investors brace for slower Fed hikes

Oil inches up amid wrangling over Russian oil price cap

Germany’s growth rate revised higher from 0.3% to 0.4% q/q in Q3

Upcoming Potential Catalysts on the Forex Economic Calendar:

Germany’s GfK consumer climate at 7:00 am GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: XAU/USD

Spot Gold (XAU/USD): 1-hour Chart

Spot Gold (XAU/USD): 1-hour Chart

There are no top-tier economic reports scheduled today so traders will likely focus on pricing in existing market themes.

Specifically, USD bears could continue to celebrate the possibility of the Fed not being as hawkish in its next meetings it was in the past couple of months.

The prospect of slower tightening from the Fed has made gold bugs more comfortable buying the safe-haven instead of USD.

XAU/USD rose from its intraweek lows at 1,730 and is now trading firmly above the 1,750 mark.

The gold-buying hit a snag at 1,760 however. As you can see, the area lines up with a previous support and the 200 SMA on the 1-hour time frame.

Did 1,760 hold as resistance this time?

Bearish momentum below the resistance could drag XAU/USD back to its 1,730 lows.

But if we see a bit of profit-taking before the week ends, or if a news update boosts the dollar against its major counterparts, then XAU/USD could retest its 1,760 highs or even make new weekly highs.