#黄金Technical analysis#24K99讯 Early European trading on Wednesday (November 13). Spot gold maintained an intraday rebound trend. Currently, the price of gold is around 2,607 US dollars/ounce. FXStreet analyst Haresh Menghani recently wrote an article on Wednesday analyzing technical trends in gold prices.

Menghani pointed out that the price of gold has clearly recovered from the nearly two-month low it hit on Tuesday. However, rising US bond yields and a stronger dollar may limit the rise in gold prices.

Spot gold closed down $21.20, or 0.81%, to $2598.03 an ounce; the price of gold fell to an intraday low of $2589.40 per ounce.

Menghani wrote that trade tariffs promised by US President-elect Trump and the uncertainty of their impact on the global economy have curbed investors' interest in high-risk assets, which in turn is driving some safe-haven funds to gold. In addition to this, before US consumer inflation data was released, some transactions adjusted positions, which was another factor providing some support for gold prices.

Menghani said traders are now looking forward to new impetus from key US consumer inflation data.

At 21:30 Beijing time on Wednesday, the US Bureau of Labor Statistics (BLS) will release the October Consumer Price Index (CPI) report. It is expected that the price of gold will fluctuate sharply after the data is released.

According to market expectations, the year-on-year increase in US CPI rose from 2.4% to 2.6% in October, and the month-on-month increase is expected to stabilize at 0.2%.

The US core CPI is expected to maintain a year-on-year increase of 3.3% in October and a month-on-month increase of 0.3%.

Analysts pointed out that if US inflation data, especially core indicators, are stronger than expected, the price of gold may fall and fall below the key mark of 2,600 US dollars/ounce; on the other hand, an inflation report that falls short of expectations will reinforce dovish expectations surrounding the Federal Reserve's interest rate cut path, which will drive the price of gold to rise further.

How to trade gold on critical days?

Menghani pointed out that from a technical point of view, the elasticity of gold prices falling below the 38.2% Fibonacci retracement level of the June-October rebound trend yesterday and the subsequent rise made bearish traders cautious. Despite this, the oscillator on the daily chart remains well within the negative area and is still far from the oversold region. This in turn indicates that the path of least resistance for gold prices is to the downside.

Therefore, any subsequent rise could be seen as a selling opportunity and be limited near the $2630-$2632 per ounce resistance level. However, some subsequent purchases may push the price of gold to the next relevant hurdle near $2650-$2,655 per ounce and move towards the $2,670 per ounce level.

The next target for gold prices will be the 2,700 US dollars/ounce mark. If the gold price effectively breaks through this mark, it will indicate that the recent revised decline from the historical high has come to an end.

(Spot gold daily chart source: FXStreet)

On the other hand, Menghani added that bearish traders need to wait for the price of gold to fall below the $2,600 per ounce mark and the 38.2% Fibonacci level before placing new bets.

Subsequent declines could drag the gold price to the $2,540/oz confluence point — including 100 dayssimple moving average(SMA) and 50% Fibonacci levels. This could be the recent strong bottom for gold prices. If it falls short, it will be viewed by bearish traders as a new trigger.

At 15:52 Beijing time, spot gold was reported at US$2606.88 per ounce.