Daily analysis
Gold - Gold is stuck in the struggle to change, waiting for this week’s employment data.
The gold price fell on Monday, ending the four-day rise in a row. Part of the reason why the dollar’s strength is due to the rebound of the US dollar is that U.S. President-elect Trump said that BRICS countries should avoid trying to replace the US dollar, which puts pressure on the gold price. Trump urged the BRICS countries not to support or create alternatives to the dollar, and threatened to impose 100% tariffs otherwise. In addition, investors are also waiting for key economic data and clues to the trend of the Federal Reserve’s interest rates. The ADP employment report and non-farm employment data will be released this week, and the speeches of Federal Reserve officials, including Federal Reserve Chairman Powell, will also attract attention. After lowering interest rates by 25 basis points to 4.50%-4.75% last month, the market currently believes that the probability of another interest rate cut in December is about 60%.
As shown in the technical chart, the RSI and the stochastic index have rebounded since the oversold area, and it is expected that the gold price will stabilize again. The recent support is expected to be $2,620 and $2,600, and the next level of reference is $2,576 on the 100-day average. The decline in gold prices in mid-November also happens to be supported at the 100-day average. The key will be in 2535, from the bottom of the consolidation from May to June to around $2,280 to the end of last month, a cumulative increase of nearly $510, half of which is $255 to $2,535. As for the current closer resistance, let’s look at the 25-day average of $2,659 and $2,690, and the next level is estimated at $2,725 and $2,750
The gold price fell on Monday, ending the four-day rise in a row. Part of the reason why the dollar’s strength is due to the rebound of the US dollar is that U.S. President-elect Trump said that BRICS countries should avoid trying to replace the US dollar, which puts pressure on the gold price. Trump urged the BRICS countries not to support or create alternatives to the dollar, and threatened to impose 100% tariffs otherwise. In addition, investors are also waiting for key economic data and clues to the trend of the Federal Reserve’s interest rates. The ADP employment report and non-farm employment data will be released this week, and the speeches of Federal Reserve officials, including Federal Reserve Chairman Powell, will also attract attention. After lowering interest rates by 25 basis points to 4.50%-4.75% last month, the market currently believes that the probability of another interest rate cut in December is about 60%.
As shown in the technical chart, the RSI and the stochastic index have rebounded since the oversold area, and it is expected that the gold price will stabilize again. The recent support is expected to be $2,620 and $2,600, and the next level of reference is $2,576 on the 100-day average. The decline in gold prices in mid-November also happens to be supported at the 100-day average. The key will be in 2535, from the bottom of the consolidation from May to June to around $2,280 to the end of last month, a cumulative increase of nearly $510, half of which is $255 to $2,535. As for the current closer resistance, let’s look at the 25-day average of $2,659 and $2,690, and the next level is estimated at $2,725 and $2,750
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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.