Gold Price Analysis: XAU/USD Sees Back And Forth Trading On Wednesday, Holding Above $2,040

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Gold prices are continuing to drift into the upside, holding on the high side of $2,040 on Wednesday. Gold hit its highest bids in six months.

The XAU/USD briefly ticked over $2,050 in the early Wednesday session before slipping back into $2,035, and Spot Gold is now testing back towards $2,050 heading into the back segment of the day's trading session. The day's bullish target will be setting fresh daily highs above $2,052.

An upside beat for US Gross Domestic Product (GDP) growth figures is mixing with surprisingly hawkish Fedspeak from Federal Reserve (Fed) Bank of Richmond President Tom Barkin, who noted that rate hikes might not be entirely off the table if inflation resumes climbing.

US Real GDP grows, Fedspeak sends mixed messages

US quarterly GDP growth clocked in at 5.2% for the third quarter, beating the market forecast of 5.0% and climbing over the previous quarter's 4.9% showing.

Next up on the economic calendar will be Thursday's US Personal Consumption Expenditure (PCE) Price Index for the month of October. 

Wall Street is expecting PCE inflation, the Fed's favored method of measuring price growth, to print a slight downtick with investors hoping that inflation continues to cool at a steady pace in the US.

MoM PCE inflation is expected to come in at 0.2% vs 0.3%, while the annualized period into October is expected to print at 3.56% versus September's 3.7%.

Federal Reserve Bank of Richmond President Tom Barkin stated on Wednesday that he is unwilling to take further rate hikes off the table once and for all, noting that he believes inflation will remain stubborn for longer than markets are currently pricing in.

Richmond Fed President Barkin remains skeptical that US inflation will be returning to 2% anytime soon without active involvement from the Fed.

XAU/USD Technical Outlook

Spot Gold continues to bid into the high end, staring straight down the mouth of 2023's highs around $2,080, and the pair is drifting higher as markets continue to push up the XAU/USD after decisively reclaiming the $2,000 handle on Monday.

Gold continues to rally after catching a rebound from the 200-day Simple Moving Average (SMA) near $1,940, and upside price action is seeing a squeeze in the moving averages, with the 50-day SMA set for a bullish crossover of the 200-day SMA as long as topside momentum holds.

XAU/USD Daily Chart

(Click on image to enlarge)

XAU/USD Technical Levels

Today last price 2047.88
Today Daily Change 6.65
Today Daily Change % 0.33
Today daily open 2041.23
Daily SMA20 1979.98
Daily SMA50 1938.85
Daily SMA100 1935.42
Daily SMA200 1942.58
Previous Daily High 2043.09
Previous Daily Low 2011.57
Previous Weekly High 2007.63
Previous Weekly Low 1965.51
Previous Monthly High 2009.49
Previous Monthly Low 1810.51
Daily Fibonacci 38.2% 2031.05
Daily Fibonacci 61.8% 2023.61
Daily Pivot Point S1 2020.84
Daily Pivot Point S2 2000.44
Daily Pivot Point S3 1989.32
Daily Pivot Point R1 2052.36
Daily Pivot Point R2 2063.48
Daily Pivot Point R3 2083.88

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