This week, FED - the US Federal Reserve notified that the QE (quantitative easing) will be reduced slowly from November till June 2022. The chairman of FED, Jerome Powell also declared that 15 billion dollars will be withdrawn every month. Importantly, Bitcoin is rising as a new king of the safe-heaven in the new decade, which pushes gold to the second choice for saving assets.
Going against gold, the DXY - US Dollar Index climbs up significantly these days because of the new positive policy of the FED.
Today, the US Bureau of Labor Statistics will release Non-farm Payrolls which will have an important effect on the USD, especially gold.
Moving average analysis
On the daily chart, the MA20/MA50 have reverse signals, however, it is not enough for the bulls to hold the game. The MA20/MA50 are still above the MA200. Eventually, the bears is coming back.
On the 4-hour chart, both the two MA20/MA50 climbed up, making a significant uptrend. The MA20 is below the MA50 showing that there may be a chance gold will fall down at the weekend.
On the 1-hour chart, the MA200 crossed over the MA20/MA50 and made a significant diversification over the MA50. But, be careful about the climbing of the MA20 which reaches the peak of MA200 right now.
In conclusion, in the long-term, gold might fall down. In the mid-term and the short-term, the bulls is dominating.
Fibonacci analysis
The Fibonacci indicator is measured on the daily chart at 2 levels:
The $1920/oz: This is a double top pattern, which is made in the last 6 months.
The $1680/oz: The strongest support in the past 2 years.
Gold is accumulating at the zone between $1770/oz and $1830/oz, considered as the Fibonacci 61.8 and 78.6. Keep an eye on the Fibonacci 78.6, this is the short-term goal for the bears this week if they want to make a significant impact.
Support/resistance analysis
The resistances are $1800/oz and $1830/oz.
The supports are $1760/oz and $1740/oz.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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.