#GoldTechnical Analysis#24K99 News: During the Asia session on Tuesday (October 29), spot gold suddenly surged in the short term, with the gold price just hitting $2757.74 per ounce, reaching a new daily high and approaching previous historical highs. FXStreet's Chief Analyst, Valeria Bednarik, wrote an analysis on the technical outlook for gold.
(Source: 24K99) 15-minute chart for spot gold.
Bednarik noted that the gold price is consolidating near historical highs and currently maintains a bullish bias.
Last Wednesday, the spot gold price set a record high of $2758.45 per ounce.
On Monday, spot gold opened significantly lower in a gap-down manner. During the early Asia session, the price briefly fell below $2725 per ounce; however, the price regained most of the lost ground during the day and closed above $2740 per ounce.
Analysts point out that although the situation in the Middle East seems to have cooled down, the uncertainty of the US election still provides support for the price of gold.
As of the Monday close, spot gold was reported at $2742.05 per ounce, with an intraday decline of nearly 0.2%; the lowest price during the session dropped to $2724.64 per ounce.
Daniel Ghali, a commodities strategist at Csi Commodity Equity Index, believes that gold prices will definitely reach $2800 per ounce this week. Ghali said: "Our expectation is that the election will actually curb the market's willingness to sell gold, so any factor that stimulates bid activity may have a greater impact."
Stonex analyst Rhona O'Connell stated: "Although one of the key factors of geopolitical risk this year is excessive elections, more than half of the global voters have the opportunity to vote, but uncertainty will not disappear when the elections end."
Short-term technical outlook for gold
Bednarik wrote that the daily chart of gold shows the moving average lines continuing to move up, well below the current gold price level; the 20-day resistance moving average (SMA) is accelerating upwards, consistent with the view that bid dominate.Simple Moving Average(SMA) is accelerating upwards, consistent with the view that put dominate, consistent with the view that call dominate."technical indicatorsForming a neutral to bearish slope, but staying within the positive zone.
In addition, on Monday's intraday, gold encountered buyers before $2721.20/oz ($2601.87/$2756.36 Fibonacci 23.6% retracement level). More importantly,ResistanceAt $2698.66/oz, this is the 38.2% Fibonacci retracement level of the above-mentioned rebound trend.
Bednarik added that the 4-hour gold chart shows that the price holds the moderately bearish 20-period SMA. The 100-period SMA and 200-period SMA continue to move upwards, well below the current gold price level; technical indicators have slightly declined but are slightly above the midline. Breaking the intraday high around $2745.90/oz on Monday should bode well for gold to retest record highs and then move towards the $2800/oz level.
(Source: FXStreet)
Valeria Bednarik provides the latest key support and resistance levels for gold price:
Support levels: $2,721.20 per ounce; $2,708.50 per ounce; $2,698.60 per ounce.
Resistance: $2758.40 per ounce; $2775.00 per ounce.
At 10:33 peking time, spot gold is trading at $2756.70 per ounce.
