Gold Technical Analysis: Prices may Give Up Bullish Trend

The upward rebound in the price of gold stopped amid the recovery of the US dollar, but XAU/USD gold tries to hold on.

  • Prices stabilizes around the level of $1760 an ounce, and the recent selling operations did not exceed the barrier of the support level of $1744 an ounce.
  • Amid this performance, US stocks fell, with traders analyzing economic data and focusing on US Central Bank Governor Jerome Powell's speech for clues about whether the Federal Reserve will slow down the pace of raising US interest rates to prevent a hard landing.

Despite the losses, the S&P 500 is set for its second consecutive monthly gain - the longest since August 2021.

Prior to Powell's remarks, Fed Governor Lisa Cook said it would be wise for the US central bank to raise lower as it determines how much higher it will need to tame price gains. Officials indicated that they plan to raise the US benchmark interest rate by 50 basis points at their last meeting of the year on December 13-14, after four consecutive increases of 75 basis points that raised it to 3.75 percent to the 4 percent target domain

Investors also waded into several economic reports, as key gauges of US activity paint a mixed picture for the third quarter. Jobs fell in October - a hopeful sign for the Federal Reserve as it seeks to curb demand. The numbers precede Friday's monthly jobs report, which is currently expected to show US employers added 200,000 workers to the payroll in November. Economists expect the unemployment rate to hold steady at 3.7 percent and average hourly earnings to moderate.

Fed officials are rapidly raising US interest rates to tame the strongest inflation in 40 years. After four consecutive rate increases of 75 basis points each, officials at the US central bank are expected to adjust the size of their moves when they meet again in mid-December. But policymakers are also indicating that they may need to raise interest rates more than they anticipated when they made their forecasts in September in the face of stronger growth, a resilient job market, and persistent inflation.

XAU/USD gold price forecast today:

So far, XAU/USD gold price is still in a neutral position with an upward tendency, and stability is above the $1775 resistance. It is important to confirm the bulls’ control. Moving towards the $1785 resistance, it is important for the future of the next psychological top, $1800 an ounce. According to the performance on the daily chart, the move towards the support levels 1735 and 1720 dollars will be important to change the general trend of gold to bearish. The future of the gold price depends on the reaction of the US dollar to the US jobs data tomorrow, Friday.

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Mahmoud Abdallah
Mahmoud has been working fulltime in the Foreign Exchange markets for 12 years. Offers his analysis, articles and recommendations at the most renewed Arabic websites specialized in the global financial markets, and his experience gained a lot of interest among Arab traders. Works on providing technical analysis, market news, free signals and more with follow up for at least 12 hours a day, and aims to simplify forex trading and the concept of trading for his audience.