Spot gold consolidates for Thanksgiving

November 26, 2021 - 1 week ago
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Thursday’s session was relatively quiet for the precious yellow metal, as the U.S. takes a break in observance of Thanksgiving Day.

Meanwhile, traders are slowly digesting the U.S. Federal Reserve release minutes from its October policy meeting.

The minutes showed that Fed officials discussed how they “would not hesitate” to take appropriate actions to address inflation pressures that posed risks to the economy.

The minutes also revealed Fed officials maintained that the spike in inflation seen this year was still likely to be transitory while acknowledging that the rise in prices had been greater than expected.

Meanwhile, the US Dollar Index, also known as US DXY, measures the greenback’s strength against a basket of six rivals holds near its 16-month highs around 96.70-90, with the 97.40-80 region potentially remaining exposed.

Based on the technical aspect, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative but remains oversold, while the Moving Average Convergence Divergence (MACD) supports a bearish bias.

Still noting, the bearish risks may continue to hold, with the support area exposed at $1,757-64.

Reassess from there as a potential rebound may arise.

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