Today’s Gold Analysis Overview:
- The overall of Gold Trend: Still bullish.
- Today's Gold Support Points: $4310 – $4270 – $4200 per ounce
- Today's Gold Resistance Points: $4365 – $4390 – $4470 per ounce
Today's Gold Trading Signals:
- Sell gold from the resistance level of $4390 with a target of $4100 and a stop-loss at $4430.
- Buy gold from the support level of $4240 with a target of $4460 and a stop-loss at $4210.
Technical Analysis of Gold Price (XAU/USD) Today:
Amid strong bull control over the market, Gold futures rose by more than $1\%$ at the end of last week's trading, while Silver prices moderated their gains after a rocket-like ascent during the same period. The yellow metal's momentum had recently slowed, but monetary policy expectations and a weakening US Dollar supported gold's recent gains.
The current question for gold investors is: Will the gold index be able to stabilize above the $4400 level heading into 2026?
According to gold trading platforms, spot gold prices rose to the resistance level of $4,353 per ounce, near their highest level in seven weeks and close to their all-time high of $4,383 per ounce reached last October. Last week's trading saw gold prices record weekly gains exceeding 3%, adding to their year-to-date increase of 66%. As for silver, gold's sister commodity, it saw little change in trading last Friday, settling around $64.465 per ounce. Overall, the white metal rose 10% last week, bringing its year-to-date gains to 120%.
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Factors Driving Gold's Gains: Will the Rally Continue?
According to gold analysts, this recent surge in the gold index comes amid expectations that the Federal Reserve will cut US interest rates twice next year. However, the US central bank anticipates only one rate cut in 2026. Investors are optimistic about a tighter monetary policy from the Fed after initial jobless claims surged to a record high, the fastest in nearly five years, reaching 236,000 in the week ending December 6.
Meanwhile, the weakening US dollar has made the precious metal more attractive. This was evident during last Friday's trading session. The US Dollar Index (DXY), which measures the value of the US dollar against a basket of major rival currencies, rose to 98.41 from an opening level of 98.32, thus concluding the trading week. Overall, the index fell by 0.6% this week, adding to its year-to-date losses of 9.3%.
At the same time, gold traders ignored the rise in US Treasury yields on Friday. The yield on the ten-year bond rose by about five basis points to 4.19%. As is known, a lower dollar value allows foreign investors to buy dollar-denominated commodities at lower prices, while rising bond yields may increase the opportunity cost of holding non-yielding gold.
Technical Levels for Gold Trading:
Based on recent trades, the gold price index continues to oscillate slightly above the 100-hour moving average line, and still has room to rise before reaching overbought levels on the Relative Strength Index (RSI).
In the short term: Given the current positive momentum, the bulls may target the resistance levels of $4355 and then $4390 per ounce, respectively. Conversely, as the bears prepare for any profit-taking attempts, they may target the support levels of $4325 and $4290 per ounce, respectively.
Long Term (Daily Chart): The gold price continues to trade within a sharp ascending channel. The 14-day RSI supports a long-term upward trend as the price heads toward the overbought zone. The gold bulls may aim for the resistance levels of $4455 and then $4680 per ounce, respectively. Conversely, over the same period, the bears, with profit-taking sales, may prepare to target the support levels of $4175 and then $3970 per ounce, respectively.
Trading Advice:
The current strong bullish path for gold is set for a critical trading week to end the year, which will shape the outlook for the new year's trades. Be cautious, as prices may move strongly in both directions.
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