Will mixed news support a consolidating movement ahead for Gold?

Macro theme:
- Markets are analyzing the latest FOMC minutes while awaiting key US data to clarify the Fed’s monetary policy outlook.
- The minutes showed a cautious stance on rate cuts, favoring gradual adjustments. Markets currently see a 66% chance of a 0.25% cut in Dec, lending medium-term support to gold.
- However, gold faces pressure from easing geopolitical tensions, a stronger USD, and a 43% YoY drop in China’s net gold imports.

Technical theme:
- XAUUSD found support around 2606, confluence with EMA78. The price is consolidating within a trading range of 2606-2719 and waiting for an apparent breakout.
- If XAUUSD closes above 2719, the price may retest the previous swing high around 2790.
- On the contrary, closing below 2606 may prompt a quick resting to the key following support at 2555.


Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness