Gold Prices Steady at $2,640 Amid Economic Data and Market Signals

Gold prices are holding near $2,640 per troy ounce as investors assess recent U.S. inflation data and global economic developments. The U.S. inflation figures for October matched initial estimates, providing some clarity on price trends in the economy.

Declining U.S. Treasury yields across the curve have increased the appeal of non-yielding assets like gold. Lower yields reduce the opportunity cost of holding gold, which can support its price.

Technical indicators offer mixed insights. The 21-day Simple Moving Average (SMA) has crossed below the 50-day SMA, a formation known as a “Death Cross,” which may signal potential bearish momentum. The Relative Strength Index (RSI) remains below 50, indicating that bearish sentiment could persist in the short term.

Immediate resistance for gold is around $2,660, where key moving averages converge. Breaking above this level could pave the way toward $2,700. On the downside, support is identified at $2,605. Falling below this threshold might lead to further declines toward $2,569 and possibly $2,537.

Investors are also awaiting key U.S. economic data, including the Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred measure of inflation. These figures could influence expectations about future monetary policy decisions.

Global factors continue to play a role in gold’s trajectory. Demand from major gold-consuming countries like China and India remains a significant factor. While China’s recent data showed a decline in net gold imports via Hong Kong, India’s upcoming festive and wedding season could boost demand.

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