XAU / USD trend forecast December 19, 2024
The price of gold (XAU/USD) pares some of its intraday recovery gains, maintaining a position just above the $2,600 level, while still posting a rise of over 0.40% for the day as the European session approaches on Thursday. The Federal Reserve's (Fed) hawkish stance presented on Wednesday supports a continued increase in US Treasury bond yields to reach multi-month highs. This development bolsters the US Dollar (USD), keeping it near a two-year peak and presenting a significant challenge for the non-interest-bearing yellow metal.
At the same time, the Fed's indication of a slower pace of interest rate reductions, coupled with ongoing geopolitical tensions and trade war concerns, reduces investors' willingness to engage with higher-risk assets. This dynamic may sustain safe-haven demand for gold, helping the XAU/USD retain its modest recovery. Even so, it would be wise to wait for robust follow-through buying to confirm that the recent steep decline from a one-month high has truly stabilized.
Gold continues to maintain its year-end downtrend, breaking below 2600 and is having a short recovery above 2610.
/// SELL XAU : zone 2622-2625
SL: 2630
TP: 50 - 150 - 300pips (2595)
Safe and profitable trading