Beat the street: PCE; Powell; Cyber Monday
Wall Street is set for a cautious start and is on pace for strong November equity rebounds. Retailers are in focus as consumers nab early deals. Plus, gold prices hit a six-month high amid renewed rates optimism.
(Partial Video Transcript)
Cyber Monday boosts November gains
AO: Now, coming up, US stocks in focus, Wall Street set for a cautious start to the final week of the month, on pace to one of the strongest November gains on record. And it's Cyber Monday, cost-conscious US consumers are nabbing early deals. Gold glistens, hitting a six-month high on the Fed's pause optimism.
I'll use Axel Rudolf's charts very soon to look at what the technical momentum indicates mean for the price of these precious metals.
Good afternoon and welcome to this new edition of beat the street. Not long now before Wall Street starts trading. Let's just get a look at the indices for you. We're seeing quite a tepid start here, as you can see there. Not a surprise, really, as we start to see people come back from that long Thanksgiving weekend.
The commentary from Fed policymakers later in the week also loomed large. And if I show you a wider term look at the chart here, you can see that the rebound in equities in November has brought the birth of Wall Street.
And let's check on the S&P as well, because that has some very strong indicators. It's brought the US 500, as it's known on our platform, within 1% of its highest intraday level this year.
Now, as I mentioned earlier, gold has been reaching new highs as well. For more on what's pushing up gold prices and what levels are next, IG's Axel Rudolph is here with more.
AR: Angeline, yes, the gold price is really, really fascinating at the moment from a technical perspective, because on the weaker US dollar, you've had this upsurge in the price of gold since the mid-November lows around $1,932 per troy ounce. And now we are currently in the process of trading above our October highs of $2,009.
And if we were to close above that today on a daily chart closing basis, for me, a technical buy signal will be given on a medium-term basis, and that could then take the gold price all the way back up again towards the highs seen back in 2020, 2022, and also 2023.
And these highs came in between $2,070 per troy ounce and $2,082. So these would be the potential upside targets if we were to close above the October high of $2,009 and do so today or in the course of this week.
And the odds are pretty high that this might actually happen, provided we stay above our October to November uptrend line, which so far can be seen around $1,978 per troy ounce.
AO: Thanks very much, Axel. And as Axel rightly mentioned, the price of gold is very much linked to the dollar, the dollar easing against a basket of major currencies. Let's just check on the daily chart for you there: down 0.2% and hovering around a two-month low just last week, when the dollar is soft, it makes gold less expensive for holders of other currencies.
Now, let's turn to the economic front. And we have quite a few US risk events there in the coming days and weeks. We've got the core PCE price index. We also have Fed Chair Jerome Powell...
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