Gold Breaks To New Highs. What Is Expected In December?

Read the article on FBS website

Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk. A positive tone in US equity futures acts as a headwind for gold, but the growing belief that the Fed might cut rates in March 2024 could limit significant dollar appreciation. Amid China's economic concerns, gold finds support in this nuanced market scenario.

XAUUSD - D1 Timeframe

XAUUSDDaily-3011.png

As seen on the attached chart which shows the daily timeframe of XAUUSD (Gold), price seems to have created a head-and-shoulders pattern, with an initial rejection from the 88% of the Fibonacci retracement level. Based on this, I expect to see a pause in the bullish rally, at least, until price reaches the 50% Fibonacci level.

XAUUSD - H4 Timeframe

 XAUUSDH4-3011.png

On the 4-Hour timeframe, a more cautious approach would be to wait for the break and retest of the trendline shown in the chart above, and then the bearish trend can be considered to be in motion.

Analyst’s Expectations: 

Direction: Bearish

Target: 1950.77

Invalidation: 2053.42

CONCLUSION

The trading of CFDs comes at a risk. To succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.

TRY TRADING NOW

You can access more trade ideas and prompt market updates on the telegram channel.

Adetola-Freeman Ogunkunle

Share with friends:

Similar

Latest news

Instant opening

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.