Spot Gold Slips After Monday’s Breakout Attempt Falls Flat
Spot Gold is edging lower on Tuesday, giving back all of Monday’s gains after buyers ran out of steam near $4,264.70. The failed push above the November 13 high at $4,245.20 has traders reassessing — and for now, the bulls are on the back foot.
At 11:33 GMT, XAUUSD is trading $4196.36, down $35.93 or -0.85%.
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Rising Treasury yields and some straightforward profit-taking are doing the heavy lifting on the downside. After a solid two-week rally from $4,000 to $4,250, it’s not surprising to see some traders cash in their chips.
The 10-year yield is holding near a two-week high, which doesn’t do non-yielding gold any favors. When yields climb, the opportunity cost of holding gold increases — and that’s enough to shake out some of the weaker hands.
The question now is whether dip-buyers step back in — and at what level.
$4,192.36 Is the Line in the Sand Today
Daily Gold (XAU/USD)
This morning, gold is straddling the short-term Fibonacci level at $4,192.36. If buyers can defend that floor, the door stays open for another run at $4,264.70 and even the record high at $4,381.44. But if $4,192 fails to hold, expect a slide toward $4,133.95 — the 50% retracement level. That’s the last real buffer before the 50-day moving average down at $4,048.49.
Today’s action suggests investors may be shifting gears — stepping away from chasing strength and waiting for a better entry. The real question: is the attractive dip at $4,133, or are traders eyeing the 50-day down near $4,050?
All Eyes on Friday’s Data
With U.S. manufacturing contracting for a ninth straight month and the Fed staying quiet, traders are looking ahead. Wednesday’s ADP jobs report and Friday’s delayed PCE print should offer clearer signals on whether the Fed cuts rates at its December meeting. Markets are pricing in an 87% chance of a cut — and lower rates typically support gold.
There’s also chatter around Trump’s pick for the next Fed chair, with Kevin Hassett reportedly in the mix. Like Trump, Hassett favors lower rates — a potential tailwind for bullion if the appointment goes through. Any surprise on that front could jolt the market in either direction.
Short-Term Outlook: Bulls Need to Defend $4,192.36
Gold’s near-term path hinges on this Fibonacci level. Hold it, and buyers keep control with upside targets at $4,264.70 and the record high at $4,381.44. Lose it, and the pullback likely deepens toward $4,133 or even the 50-day at $4,048. Either way, expect choppy, range-bound trade between $4,000 and $4,400 until the Fed tips its hand.
Source: Fxempire
