-
Gold loses ground after hitting tough resistance.
-
Lacks bullish signals but pattern of higher lows remains intact.
Gold could not mark a new higher high above January’s tough resistance of 2,065, correcting lower to close around its 50-day exponential moving average (EMA) and the support trendline from November at 2,025.
The latest downturn in the technical indicators has increased downside risks, but the series of higher lows that started in October keeps feeding hopes for a bullish continuation as long as the price holds above the 2,000 round level.
Should the bears breach the 2,000 floor, the price could dive into the 1,965-1,975 zone formed by the 50% Fibonacci retracement of the previous upleg and the 200-day EMA. The lower boundary of the bearish channel is also in the neighborhood. Therefore, a step lower could raise fresh selling interest, pressing the price towards the 61.8% Fibonacci of 1,938.
If the bullish scenario unfolds, with the precious metal bouncing back above the 2,035 constraining zone, traders will look for an extension above the critical 2,065-2,079 resistance territory before they target the 2,100 psychological number. Beyond the latter, the recovery could stretch towards the record high of 2,144.
All in all, gold is maintaining a neutral profile in the short-term picture. A decisive rally above 2,065-2,079 or a plunge below 1,965-1,975 would change the outlook accordingly.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD tumbles below 1.0800 on Trump’s tariff plan
The EUR/USD pair plunges to near 1.0780 amid the renewed US Dollar demand on Friday during the Asian trading hours. Also, Donald Trump’s proposals to raise tariffs weigh on the Euro against the Greenback. Traders await the advanced US Michigan Consumer Sentiment data for November for fresh impetus.
GBP/USD faces rejection near 100-day SMA, holds above mid-1.2900s
GBP/USD edges lower on Friday amid the emergence of some USD dip-buying. The BoE’s hawkish tilt could underpin the GBP and limit losses for the major. The technical setup favors bears and supports prospects for a further downfall.
Gold appears stuck between key technical levels, what’s next?
Gold price has returned to the red early Thursday after reversing more than half of the Trump win-led 3% slide on Wednesday. Gold sellers fight back control, as the US Dollar finds its feet amid a pause in the US Treasury bond yields sell-off while awaiting the Michigan preliminary Consumer Sentiment data.
BTC touches new all-time high near $77,000 following Fed rate cut
Bitcoin price rallied and reached a new all-time high of $76,849 following the US Federal Reserve’s 25 basis point rate cut. Ethereum and Ripple followed suit and closed above their key resistance levels, hinting at a possible rally ahead.
Outlook for the markets under Trump 2.0
On November 5, the United States held presidential elections. Republican and former president Donald Trump won the elections surprisingly clearly. The Electoral College, which in fact elects the president, will meet on December 17, while the inauguration is scheduled for January 20, 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.