### The price of gold is experiencing a strong upward trend, with buyers (bulls) dominating the market movement. During the past week, gold futures rose by more than 1%, supported by a temporary decline in the momentum of the yellow metal, but factors such as expectations of U.S. monetary policy and a weak U.S. dollar contributed to strengthening gains. The price is currently moving within a steep ascending channel in the long term, with positive support from the 14-day Relative Strength Index (RSI), which is heading towards the overbought zone, reflecting strong upward momentum. In the near term, the price fluctuates above the 100-hour moving average, allowing additional room for rise before reaching overbought areas.
#### Current Prices and Key Levels
The price of gold recorded a significant rise, reaching the resistance level of $4353 per ounce, very close to the highest level in seven weeks, and near the historical peak of $4383 per ounce recorded last October. Gold achieved weekly gains exceeding 3%, adding to an annual rise of 66% so far this year.
- Major Support Levels: $4310, $4270, $4200, $4240 (a suitable buying level), $4325, $4290, $4175, and $3970 in the long term.
- Major Resistance Levels: $4365, $4390, $4470, $4355, $4455, and $4680 in the long term.
#### Trading Recommendations
- Sell Recommendation: It is preferable to sell from the resistance level of $4390, with a target at $4100, and a stop loss at $4430.
- Buy Recommendation: It is preferable to buy from the support level of $4240, with a target at $4460, and a stop loss at $4210.
It is highly advised to exercise extreme caution while trading, as prices may experience strong fluctuations in both directions, especially with the end of the year approaching and a critical trading week ahead, amid bears (sellers) ready to take profits.
#### Future Outlook
Traders and investors are questioning the possibility of stabilizing the price of gold above $4400 at the beginning of 2026. In the near term, bulls may target levels of $4355 then $4390, while bears may push the price towards support at $4325 then $4290 in case of a retreat. In the long term, it is expected to continue rising towards $4455 then $4680, or a potential retreat to $4175 then $3970 in strong selling scenarios.
The upward trend continues, supported by expectations of the U.S. Federal Reserve cutting interest rates twice during 2026 (despite official forecasts for only one cut), alongside a rise in initial unemployment claims to 236,000 (the highest rate in five years), and a weakening U.S. dollar by 0.6% weekly and 9.3% since the beginning of the year. Traders ignored the rise in U.S. Treasury yields to 4.19%, which enhances the appeal of gold as a safe asset that does not yield returns.