Market Analytics and Technical Considerations
- The week is expected to end well for gold prices due to widespread US Dollar depreciation.
- The dovish view of the Federal Reserve and limited trading will keep the price of gold supported.
- Going into the US NFP week, the price of gold is set for a difficult fight; $1,775 is still within reach.
As it enters its fourth consecutive trade day, the gold price is defying bearish pledges close to the round $1,760 mark. After a disappointing finale to last week, the shiny metal is on course to record weekly gains this week. As the conciliatory Federal Reserve minutes gave the current fall in the greenback from the over two-decade highs additional legs, wide ranging US Dollar softness remained the fundamental driver of the gold price rebound.
Weak US statistics added to the buck’s woes, but traders managed to hold onto gold’s weekly gains throughout the week of Thanksgiving. The Fed policymakers’ agreement that future rate increases must be less in magnitude also had a negative impact on US Treasury yields. In the coming week, the US Nonfarm Payrolls (NFP), one of the most important statistics anticipated before the December FOMC meeting, will be released.
Observe key levels for the price of gold.
The gold price is attempting to overcome a significant barrier at $1,757, which marks the confluence of the Fibonacci 23.6% one-day and one-week moving averages, according to the Technical Confluence Analyzer.
The preceding day’s high at $1,759, where the SMA10 one-day also corresponds, continues to be the upper limit of the imminent upside.
The Fibonacci 38.2% one-week is at $1,762, which will be the next big topside obstacle.
A prolonged upward movement toward the pivot point one-day R3 at $1,769 will begin with a move over the latter.
For Gold bulls, $1,775 will be a difficult barrier to overcome higher up. At that point, the Fibonacci 61.8% one-week and the pivot point one-month R2 connect.
On the other hand, below the Fibonacci 61.8% one-day of $1,753, the preceding week’s bottom of $1,749 will be tested as immediate support.
The prior week’s bottom at $1,747 represents the next best downside option for proponents of gold, and any more dips are likely to target the pivot point’s one-day S3 level at $1,741.
