Prepare for Further Gains (Chart)

Today’s Gold Analysis Overview:

  • The overall of Gold Trend: Strongly bullish.
  • Today’s Gold Support Points: $4280 – $4210 – $4100 per ounce.
  • Today’s Gold Resistance Points: $4370 – $4390 – $4460 per ounce.

Gold Analysis 17/12 (graph)

Today’s Gold Trading Signals:

  • Sell gold from the resistance level of $4400 with a target of $4200 and a stop-loss at $4460.
  • Buy gold from the support level of $4220 with a target of $4460 and a stop-loss at $4170.

Technical Analysis of Gold Price (XAU/USD) Today:

Despite the rise in the US Dollar, the gold index has resumed its ascent, driven by a surge in safe-haven buying amidst global geopolitical tensions, central bank purchases, and growing anxiety over the future of US Federal Reserve policies. According to gold trading platforms, spot gold prices rose to the resistance level of $4342 per ounce, placing it just steps away from its all-time high of $4382 tested last October.

Technical Outlook for Gold

According to analyst forecasts, gold’s bullish trajectory may continue. However, it is important to note that recent market gains have pushed technical indicators into deep overbought territory. Currently, the 14-day Relative Strength Index (RSI) is hovering around 71 (above the overbought threshold of 70), while the MACD index is also at peak levels. Consequently, any weakening of the factors supporting gold’s gains could trigger technical profit-taking at any time. Nevertheless, continued momentum could carry prices to the $4400 per ounce resistance—a critical milestone for bulls to launch record-breaking breakouts in the new year.

Please bear in mind that we are approaching a holiday season characterized by lower liquidity and increased price volatility. Therefore, it is advisable to close trading positions before this unstable period.

According to recent trading sessions, gold has been bolstered by expectations of further US interest rate cuts, which typically increases the appeal of non-yielding assets. Furthermore, delayed US employment data released yesterday (Dec 16) came in weak, with November gaining only 64,000 jobs (while October saw a net loss of 105,000) and the unemployment rate rising to 4.6%. This disappointing labor market data, alongside stagnant retail sales (0.0%), reinforces the case for a more accommodative global monetary policy, further supporting gold.

Will gold prices rise in the coming days?

Technical indicators continue to support an upward move. The bullish trend for Comex gold futures remains intact on the daily chart. Despite the appearance of a “Doji” pattern in futures—which signals neutral market sentiment—bullish speculators still hold the technical advantage. Gold is currently trading above its 20-day Simple Moving Average (SMA). Futures may now attempt to breach the $4400 resistance level once more. Conversely, if selling pressure increases, gold is expected to find support near its upward-sloping 20-day SMA.

Trading Tips:

The gold market is poised for a strong upward breakout. Therefore, always be sure to seize any significant price pullbacks to consider buying again.

Ready to trade our Gold forecast? We’ve shortlisted the most trusted Gold brokers in the industry for you.

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