Daily analysis
Gold - Gold explores the 2700 mark, paying attention to U.S. inflation data
Gold rose to a two-week high on Tuesday. The Central Bank of China bought gold again after six months, and the expectation of the U.S. Federal Reserve Board (FED) to cut interest rates next week also increased bullish sentiment, so that the global easing trend is believed to provide further support for gold prices. These two days will soon usher in the Bank of Canada and the European Central The bank and the Swiss National Bank will cut interest rates again, and the Federal Reserve is likely to cut interest rates next week. Today’s market focus will be on the U.S. Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. According to the CME FedWatch tool, traders predict that the possibility of the Federal Reserve further reducing interest rates by 25 basis points at the meeting on December 17-18 is 86%. Traders believe that the possibility of the Federal Reserve cutting interest rates again by 25 basis points at the meeting on December 17-18 is 86%. In addition, China’s resumption of purchases may support investor demand. In 2023, China was the world’s largest official buyer of gold, but the People’s Bank of China suspended purchases for 18 consecutive months in May. As for the geopolitical risks in Ukraine and the Middle East, they have also driven investors’ demand for gold. Driven by the central bank’s interest rate cut and the intensification of geopolitical tensions, the gold price has risen by about 29% this year.
According to the technical chart, after a narrow range of holdings for about two weeks, the gold price fluctuated significantly at the end of Monday, and there were signs of a preliminary test of the recent top. The gold price fell to $2,613 last Friday, but soon pulled back the decline to the level of 2632 at the end of the day. In the morning session on Wednesday, it hit the 2700 threshold again, which was the highest level after the gold price fell nearly 100 yuan in a single day on November 25, when the daily high reached the level of 2,721. At present, both the RSI index and the stochastic index have shown an increase, and it is estimated that the gold price will continue to stabilize in the short term. $2,680 is the position of the downward trend line extending from the end of October, which has just been initially broken on Tuesday. If the short-term line can continue to be held above this area, it is expected to further consolidate the upward trend of the gold price. The upward resistance is expected to be 2721 and 2750, and then point to $2,762 and $2,790. The larger support level is expected to be $2,657 and $2,627, and the next level refers to $2,600 and 100-day averages of $2,590. The fall in gold prices in mid-November also happens to be supported at the 100-day average.
Gold rose to a two-week high on Tuesday. The Central Bank of China bought gold again after six months, and the expectation of the U.S. Federal Reserve Board (FED) to cut interest rates next week also increased bullish sentiment, so that the global easing trend is believed to provide further support for gold prices. These two days will soon usher in the Bank of Canada and the European Central The bank and the Swiss National Bank will cut interest rates again, and the Federal Reserve is likely to cut interest rates next week. Today’s market focus will be on the U.S. Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday. According to the CME FedWatch tool, traders predict that the possibility of the Federal Reserve further reducing interest rates by 25 basis points at the meeting on December 17-18 is 86%. Traders believe that the possibility of the Federal Reserve cutting interest rates again by 25 basis points at the meeting on December 17-18 is 86%. In addition, China’s resumption of purchases may support investor demand. In 2023, China was the world’s largest official buyer of gold, but the People’s Bank of China suspended purchases for 18 consecutive months in May. As for the geopolitical risks in Ukraine and the Middle East, they have also driven investors’ demand for gold. Driven by the central bank’s interest rate cut and the intensification of geopolitical tensions, the gold price has risen by about 29% this year.
According to the technical chart, after a narrow range of holdings for about two weeks, the gold price fluctuated significantly at the end of Monday, and there were signs of a preliminary test of the recent top. The gold price fell to $2,613 last Friday, but soon pulled back the decline to the level of 2632 at the end of the day. In the morning session on Wednesday, it hit the 2700 threshold again, which was the highest level after the gold price fell nearly 100 yuan in a single day on November 25, when the daily high reached the level of 2,721. At present, both the RSI index and the stochastic index have shown an increase, and it is estimated that the gold price will continue to stabilize in the short term. $2,680 is the position of the downward trend line extending from the end of October, which has just been initially broken on Tuesday. If the short-term line can continue to be held above this area, it is expected to further consolidate the upward trend of the gold price. The upward resistance is expected to be 2721 and 2750, and then point to $2,762 and $2,790. The larger support level is expected to be $2,657 and $2,627, and the next level refers to $2,600 and 100-day averages of $2,590. The fall in gold prices in mid-November also happens to be supported at the 100-day 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.