Gold Strengthens: Bulls Set Sights on Bigger Moves

Key Highlights

• Gold started a fresh upward move above the $2,675 resistance.
• A key bullish trend line is forming with support at $2,690 on the 4-hour chart.
• Oil prices corrected some gains and traded below $78.80.
• EUR/USD was able to recover above the 1.0300 resistance zone.

Gold Price Technical Analysis

Gold prices have shown strong demand, remaining well-supported in the vicinity of the $2,620 mark against the US Dollar. After building a solid base, the price has surged past both $2,650 and the critical $2,675 level, marking a significant upward trend.

On examining the 4-hour chart for XAU/USD, the price has even managed to cross above $2,688, entering a favorable market zone. Notably, it has surpassed both the 100 Simple Moving Average and the 200 Simple Moving Average, indicating a sustained bullish momentum.

As the price approached $2,725, a slight correction occurred, causing it to dip briefly below the $2,720 and $2,710 thresholds. The initial support is identified at the $2,690 level, accompanied by a crucial bullish trend line that also suggests stability at $2,690.

The immediate support is noted at $2,672, while a significant support level is identified at $2,665. The primary support level to watch is around $2,655; a breach below this level may initiate further declines, with $2,620 being the next major support area.

Looking upward, immediate resistance lies at $2,725. The next notable resistance point is situated near $2,740. A decisive move past this resistance could potentially lead to further upsides, with the next significant hurdle appearing at $2,750. If the price manages to break above $2,750, it may well rally towards the $2,765 level.

Shifting focus to oil markets, there was a minor pullback occurring around the $80.00 level, resulting in trading below $78.80.

Upcoming Economic Releases

• UK Claimant Count Change for Dec 2024 – Forecast at 10.3K, compared to 0.3K previously reported.
• UK ILO Unemployment Rate for Nov 2024 (3M) – Expected to be 4.3%, unchanged from previous.

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