At the end of the Asian market on Wednesday (December 6th), spot gold maintained a mild rebound trend within the day, with gold prices currently reporting around $2023 per ounce. FXTree analyst Mat í as Salord's latest article analyzes the prospects of gold technology.
Salord pointed out that on Tuesday, although the yield of US treasury bond bonds continued to decline, the gold price continued to fall from its historical high. The continued rise of the US dollar has put pressure on gold.
After hitting a historic high on the previous trading day, gold prices recorded their second consecutive day of decline on Tuesday. The strengthening of the US dollar has put pressure on gold prices.
Spot gold closed Tuesday down $9.83, a decrease of 0.48%, at $2019.22 per ounce. The price of gold plummeted to $2009.89 per ounce during the day.
Salord believes that bearish pressure on gold still exists. Once the gold price falls below $2010 per ounce, gold may face more downward pressure.
Salord pointed out that the short-term upward trend of the US dollar still exists, which means that the outlook for gold is negative. On Wednesday, the market focus will continue to be on US data, especially the ADP private employment report. The number of initial jobless claims will be announced on Thursday, and non farm employment data will be released on Friday.
At 21:15 Hong Kong time on Wednesday, data on the changes in ADP employment in the United States for November will be released. It is expected that ADP employment will increase by 130000 in November, compared to an increase of 113000 in October.
Kim Wyckoff, Senior Analyst at Kitco Metals, said that gold bulls have been exhausted and have paused after rebounding.
Short term technical prospects for gold
Salord stated that the gold price once tested the 2010 USD/oz support level during Tuesday's intraday trading, which has become an obstacle to further decline. If it falls below this level, it will increase bearish pressure, and gold prices may test the $2000/ounce region and the 20 day simple moving average (SMA) of $1995/ounce. The next targets for gold prices are $1985/ounce and $1975/ounce.
Salord added that gold prices have fallen significantly from historical highs, falling by over $100. Despite some technical indicators showing oversold, gold prices still seem to have the potential for further decline. The momentum continues to be bearish. If it remains above $2010 per ounce, gold prices may stabilize with an initial resistance level of $2030 per ounce. Bulls need to see gold prices rise above 2050/ounce to indicate that the short-term technical outlook may improve. It is expected that the high volatility of gold prices will continue.
Salord provides the latest key support and resistance levels for gold prices:
Support level: 2010 USD/oz; 1985 USD/oz; 1970 USD/oz
Resistance level: $2030/ounce; $2045 per ounce; $2100 per ounce
At 13:45 Hong Kong time, spot gold was trading at $2023.32 per ounce.
