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Gold rose for the second successive week and finished slightly below $1810 after rebounding from $1783. It was unable to hit fresh monthly highs.
The precious metal continued to improve its outlook, with a close above the 55-week simple moving average. The upside continues to face resistance around $1810/15. A break of that area should clear the way for a test of the next critical level seen at the $1830 region.
The upside in gold markets is supported by a weaker US dollar and the improvement in market sentiment. On the contrary, the main negative factors are the current level of the US yields, that is moving to the upside amid expectations of interest rate hikes from the Federal Reserve next year.
Economic Data
Although no economic data was out on Friday because of the Christmas break during the US session, data released on the week is still being digested by investors and traders including Wednesday’s Gross Domestic Product Annualized and Personal Consumption Expenditures Prices in addition to Thursday’s Core Personal Consumption Expenditures – Price Index, released by the University of Michigan and the Durable Goods Orders’ figure.
Other Developments
China announced via finance ministry on Friday that tariff exemptions on some imported goods from the United States will be extended until June 30, 2022.
Brent crude futures snapped a three-day rally on Friday in light trading before the Christmas holidays, but the benchmark ended the week higher, with the market focusing on next steps by OPEC+ and the impact of the Omicron variant.
Brent crude futures settled 71 cents lower at $76.14 a barrel at the early close of 1300 GMT, rising by about 3% on the week.
U.S. markets closed on Friday for the Christmas holiday. Oil prices have recovered this week as fears over the impact of the highly infectious Omicron variant on the global economy receded, with early data suggesting it causes a milder level of illness.
There was no market reaction to this news headline as trading conditions remained thin on Christmas Eve. US stock markets will open next Monday, 27 December. The S&P 500 Index registered impressive gains this week and closed within a touching distance of the record-high it set at 4,743. On a weekly basis, the index gained more than 2%.
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