Gold prices rose over 1% as the dollar rally paused, with market players awaiting comments from Federal Reserve officials for clues on the U.S. interest rate path. Expectations of less-dovish rhetoric from U.S. policymakers in December and a potential rate hold in January may pose an obstacle for gold, as investors recalibrate their expectations. Strong U.S. economic and inflation data, along with news of Ukraine using U.S.-made weapons to strike Russia, impacted the debate among Fed policymakers over the pace and extent of rate cuts.
From a technical point of view, the price is testing the support area of the 100-day moving average just below the resistance of the 38.2% of the weekly Fibonacci retracement level. The Stochastic is in the extreme oversold level hinting to a potential continuation of the recent bullish correction while the Bollinger bands are quite expanded indicating that volatility in the market for gold is fueled up. The faster 50-day moving average is still trading above the slower 100-day despite the recent aggressive bearish correction further supporting the narrative of a bullish correction. If the price manages to make a valid break above the psychological resistance of $2,600 then the next area of possible resistance might be found around $2,680 which is the combination of the 23.6% of the weekly Fibonacci retracement level and the 50-day moving average.
From a technical point of view, the price is testing the support area of the 100-day moving average just below the resistance of the 38.2% of the weekly Fibonacci retracement level. The Stochastic is in the extreme oversold level hinting to a potential continuation of the recent bullish correction while the Bollinger bands are quite expanded indicating that volatility in the market for gold is fueled up. The faster 50-day moving average is still trading above the slower 100-day despite the recent aggressive bearish correction further supporting the narrative of a bullish correction. If the price manages to make a valid break above the psychological resistance of $2,600 then the next area of possible resistance might be found around $2,680 which is the combination of the 23.6% of the weekly Fibonacci retracement level and the 50-day moving average.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.