Today’s Gold Analysis Overview:
- The overall of Gold Trend: Bullish.
- Today's Gold Support Points: $4100 – $4060 – $3990 per ounce.
- Today's Gold Resistance Points: $4170 – $4220 – $4280 per ounce.
Today's Gold Trading Signals:
- Sell gold from the resistance level of $4175 with a target of $3980 and a stop-loss at $4200.
- Buy gold from the support level of $4030 with a target of $4150 and a stop-loss at $4000.
Technical Analysis of Gold Price (XAU/USD) Today:
Since the start of the week's trading, the gold price index has been on an upward rebound path, with gains extending to the $4169 per ounce resistance level before spot gold prices settled around the $4160 per ounce level at the time of writing this analysis. The halt in the US Dollar's gains amid important economic releases and ahead of a US holiday helped gold bulls achieve the recent gains. According to performance across gold trading company platforms, the price of the yellow metal rose as expectations for the US Federal Reserve to cut US interest rates this year increased.
Will gold's gains continue in the coming days?
Undoubtedly, according to gold analysts' forecasts, the upward trend of the gold index is strengthening with its recent gains, and all eyes are on the $4220 per ounce resistance level, which is the key to achieving technical, record-breaking upward breakouts for gold prices. The movement of the technical indicators confirms the technical outlook: the 14-day Relative Strength Index (RSI) is around a reading of 57 and has more time and stronger gains before reaching overbought territory. At the same time, the MACD indicator lines are tilting upward, awaiting stronger stimulus.
Overall, global trade and geopolitical tensions, gold purchases by central banks, and the trajectory of the US dollar will remain the most significant factors influencing the gold market in the coming period. It's worth noting that the strongest forecasts point to an almost 81% probability of a US interest rate cut in December, following Federal Reserve Chairman Christopher Waller's endorsement of a rate cut, citing a weak labor market and slowing inflation. Attention now shifts to the release of delayed economic data, including the US Producer Price Index (PPI), retail sales figures, and weekly US jobless claims.
According to commodity market experts, gold prices are expected to remain within a specific trading range this week, as their direction is mainly affected by changes in US interest rate expectations and the tone of Federal Reserve rhetoric. Currently, with US Treasury yields stabilizing and the US Dollar holding firm near its recent highs, the potential for gold to rise remains limited in the near term.
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Trading Advice:
Closely monitor the upward trend of gold at this crucial stage. Selling positions can be considered at the resistance levels of $4255 and $4300 per ounce, but without excessive risk.
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