Today’s Gold Analysis Overview:
- The overall Gold Trend: Still bullish.
- Today's Gold Support Points: $4410 – $4360 – $4280 per ounce
- Today's Gold Resistance Points: $4475 – $4520 – $4580 per ounce
Today's Gold Trading Signals:
- Sell gold from the resistance level of $4500 with a target of $4300 and a stop loss at $4550.
- Buy gold from the support level of $4360 with a target of $4520 and a stop-loss at $4320.
Technical Analysis of Gold Price (XAU/USD) Today:
For the second consecutive day, amid profit-taking, gold prices are retreating from near their all-time highs. According to gold trading platforms, the gold index is stabilizing around $4415 per ounce at the time of writing, below its highest level this week and the psychological resistance level of $4500 per ounce. Gold is experiencing a slight decline ahead of the anticipated reaction to important US economic data releases this week.
Top Regulated Brokers
Global Tensions Continue to Fuel Gold Purchases
According to analyst forecasts, do not be misled by the recent dip. Global geopolitical tensions continue to drive aggressive gold purchases by both central banks and individuals. Recent U.S. actions in Venezuela have triggered a new wave of global market volatility, bolstering the appeal of safe-haven assets. Analysts suggest that while the structural outlook remains positive (especially for silver), prices at these levels are becoming more sensitive to profit-taking and liquidity shifts, making room for sharp but temporary pullbacks even as the medium-term trend remains supported.
Generally, investors are temporarily ignoring geopolitical concerns.
The recent gold price losses have not altered the overall trend, which remains upward. The 14-day Relative Strength Index (RSI) is holding steady around 60, supporting the bulls' dominance. Meanwhile, the MACD indicator is in upward territory. A primary trend reversal is unlikely unless prices fall toward or below the $4,200 level; otherwise, the "bulls" maintain technical control. Geopolitical risks remain high: President Donald Trump stated that Venezuela would deliver up to 50 million barrels of oil to the U.S., and the White House has not ruled out military action regarding the annexation of Greenland. Furthermore, central bank gold acquisitions continue at a steady and expanding pace.
However, traders seem to have shifted their focus elsewhere, at least for now. On the economic front, the Institute for Supply Management's Purchasing Managers' Index (PMI) for December, released earlier this week, registered 47.9, down from 48.2 in November and below economists' expectations of 48.7, according to FactSet data. A reading below 50 indicates economic contraction.
Any further signs of a slowing U.S. economy could impact monetary policy expectations. Looking ahead, investors will be closely watching the U.S. jobs report for December, due Friday. The market currently expects, with an 84% probability, that the Federal Reserve will keep U.S. interest rates unchanged at its meeting later this month, according to the Chicago Board of Trade's FedWatch tool.
However, the U.S. labor market data could alter this expectation. If unemployment continues to rise, the likelihood of an interest rate cut on January 28th may increase. This would make gold more attractive, while other less risky assets, such as bonds and cash, would lose their appeal. Furthermore, the geopolitical risks that contributed to the rise in gold prices earlier this week have not disappeared and could return just as quickly.
Trading Advice:
Traders advise continuing to buy gold on significant price pullbacks while closely monitoring the influential market factors mentioned in this analysis to capture the best trading opportunities.
Ready to trade our Gold forecast? We’ve shortlisted the most trusted Gold brokers in the industry for you.