- The overall trend for gold: Strongly bullish.
- Gold support points today: 4280 – 4210 – 4100 dollars per ounce.
- Gold resistance points today: 4370 – 4390 – 4460 dollars per ounce.
#### Gold Trading Recommendations Today
- Sell gold from the resistance level of $4400, with a target of $4200, and a stop loss at $4460.
- Buy gold from the support level of $4220, with a target of $4460, and a stop loss at $4170.
#### Daily Technical Analysis for Gold / US Dollar XAU/USD
Despite the rise in the US dollar price, the gold index has risen again with momentum from the demand for gold as a safe haven amid global geopolitical tensions, central bank purchases of gold, and increasing concern about the future of US central bank policies. According to gold trading platforms, spot gold prices have risen to the resistance level of $4342 per ounce, just a few steps away from its all-time high when it tested the resistance of $4382 per ounce last October.
#### Technical Forecasts for Gold
According to gold analysts' forecasts, the bullish trend for gold may continue, considering that the recent market gains have been sufficient to push the technical indicators towards strong overbought levels. Currently, the 14-day Relative Strength Index (RSI) is around a reading of 71 and the peak line is at 70, while at the same time, the MACD indicator is in the overbought zone. Therefore, any weakness in the factors supporting gold gains could lead to technical sell-offs for profit-taking at any time. However, the continuation could take gold prices to resistance levels of $4400 per ounce, an important station for bulls to launch for record-breaking upward breakouts in the new year.
Dear reader, please keep in mind that we are approaching a holiday period where liquidity decreases and price volatility increases, so it is better to close trading positions before that unstable period.
According to recent trades on reliable trading platforms, the price of gold has risen, supported by expectations of a decrease in US interest rates from the Federal Reserve, which usually enhances the attractiveness of trading gold that does not yield interest. Overall, the recent US employment data has been weak, highlighting the disappointing state of the US labor market. According to commodity market experts, the expectations for a more accommodative monetary policy worldwide continue to support gold. Recently, the weakness of the US dollar has reinforced this trend, increasing the attractiveness of investing in gold.
#### Will Gold Prices Rise in the Coming Days?
The technical indicators still support the rise of gold. The bullish trend of gold futures contracts on the Comex exchange remains intact, based on the daily chart. According to trading experts, although a "Doji" pattern has appeared in the futures contracts, indicating market sentiment neutrality, gold bulls still enjoy a technical advantage. The price of gold is still above the 20-day simple moving average. Futures contracts may attempt again to break through the resistance level at $4400 per ounce. Meanwhile, if selling pressure increases, it is expected that the price of gold will find support near the 20-day simple moving average with a trend.
