Technical Analysis
Key Levels:
Support:
Primary Support: $2,630–$2,640, a crucial level that has consistently held over the past weeks.
Secondary Support: A breakdown below $2,630 could lead to further declines toward $2,600 and $2,570
Resistance:
Primary Resistance: $2,670–$2,700, a zone gold must clear to confirm bullish momentum.
Extended Target: A sustained move above $2,700 could push gold toward $2,720 or higher, with the long-term target near $2,750
Price Action:
Gold has been consolidating around $2,650, indicating indecision in the market. Traders are awaiting a catalyst for a breakout in either direction
Indicators:
RSI: Neutral, indicating no overbought or oversold conditions.
Moving Averages: Gold is trading near its 50-day moving average, reflecting a balance between buyers and sellers.
Elliott Wave Analysis: Suggests the current correction phase might end soon, potentially paving the way for an upward movement
Fundamental Analysis
Key Drivers:
1. Federal Reserve Meeting:
A dovish stance or pause in rate hikes could weaken the USD, benefiting gold. Conversely, a hawkish surprise could pressure prices.
2. US Economic Data:
Housing Data: Strong numbers may support the USD, weighing on gold.
GDP Report: A weaker-than-expected reading could bolster gold's safe-haven appeal, while strong data might strengthen the dollar
3. Global Economic Factors:
Geopolitical Risks: Persistent uncertainties may sustain demand for gold as a safe-haven asset.
Inflation: Gold's role as an inflation hedge keeps it relevant amid ongoing inflationary pressures globally
4. Seasonal Trends:
December traditionally sees increased gold demand, linked to year-end portfolio adjustments and festive purchases.
Trading Scenarios
Bullish Scenario:
Entry: Above $2,660
Targets: $2,700, $2,720, and potentially $2,750
Stop-Loss: Below $2,630
Strategy: Look for a confirmed breakout above resistance or positive market sentiment boosting gold.
Bearish Scenario:
Entry: Below $2,630
Targets: $2,600 and $2,570
Stop-Loss: Above $2,660
Strategy: Watch for rejection at $2,650 or stronger-than-expected US data supporting the USD.
Key Levels:
Support:
Primary Support: $2,630–$2,640, a crucial level that has consistently held over the past weeks.
Secondary Support: A breakdown below $2,630 could lead to further declines toward $2,600 and $2,570
Resistance:
Primary Resistance: $2,670–$2,700, a zone gold must clear to confirm bullish momentum.
Extended Target: A sustained move above $2,700 could push gold toward $2,720 or higher, with the long-term target near $2,750
Price Action:
Gold has been consolidating around $2,650, indicating indecision in the market. Traders are awaiting a catalyst for a breakout in either direction
Indicators:
RSI: Neutral, indicating no overbought or oversold conditions.
Moving Averages: Gold is trading near its 50-day moving average, reflecting a balance between buyers and sellers.
Elliott Wave Analysis: Suggests the current correction phase might end soon, potentially paving the way for an upward movement
Fundamental Analysis
Key Drivers:
1. Federal Reserve Meeting:
A dovish stance or pause in rate hikes could weaken the USD, benefiting gold. Conversely, a hawkish surprise could pressure prices.
2. US Economic Data:
Housing Data: Strong numbers may support the USD, weighing on gold.
GDP Report: A weaker-than-expected reading could bolster gold's safe-haven appeal, while strong data might strengthen the dollar
3. Global Economic Factors:
Geopolitical Risks: Persistent uncertainties may sustain demand for gold as a safe-haven asset.
Inflation: Gold's role as an inflation hedge keeps it relevant amid ongoing inflationary pressures globally
4. Seasonal Trends:
December traditionally sees increased gold demand, linked to year-end portfolio adjustments and festive purchases.
Trading Scenarios
Bullish Scenario:
Entry: Above $2,660
Targets: $2,700, $2,720, and potentially $2,750
Stop-Loss: Below $2,630
Strategy: Look for a confirmed breakout above resistance or positive market sentiment boosting gold.
Bearish Scenario:
Entry: Below $2,630
Targets: $2,600 and $2,570
Stop-Loss: Above $2,660
Strategy: Watch for rejection at $2,650 or stronger-than-expected US data supporting the USD.
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.
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.