#Gold Technical Analysis# 24K99 News This week, the gold market encountered extremely brutal selling, with a decline of over 4%. FXStreet analyst Pablo Piovano wrote an article on Friday, November 15th, analyzing and predicting the price trend of gold.

Spot gold closed sharply down $121.06 this week, a 4.51% drop, at $2562.92 per ounce.

(Spot gold weekly chart Source: 24K99)

Piovano wrote that the gold price fell for the third consecutive week and touched a two-month low near $2540 per ounce. Cautious Fed and the 'Trump trade' triggering a dollar rebound is putting pressure on gold. If the price falls below the key level of $2500 per ounce, it may trigger a deeper pullback in gold.

In fact, the gold price saw a significant surge at the start of the new year but encountered strong resistance near $2800. Additionally, the gold price rose by about 30% from January to the end of October but fell by about 9% in just a few trading days in November.

The main culprit of the sharp drop in gold: the 'Trump trade'

Piovano pointed out that the main culprit of this round of sharp decline in gold is the 'Trump trade'.

Gold performed quite well in October. In the middle of the month, supported by expectations of a possible victory by Donald Trump, the US dollar rose every week. The performance of gold was even better, despite a significant rebound in US Treasury yields of different maturities, gold continued its upward trend from the previous month.

However, since Donald Trump won the US presidential election, everything has changed dramatically.

In fact, since Trump's victory, the US dollar has regained strong upward momentum, putting pressure on csi commodity equity index. The ICE US dollar index rose to a new high for 2024 above the 107.00 level, while the price of gold began a strong rebound towards the key level of $2500 per ounce.

Piovano pointed out that the main concerns surrounding this non-interest-bearing metal include the possibility of the Trump administration imposing tariffs, while easing corporate oversight and fiscal policies. These measures may seep into the entire economy through inflationary pressures, and are likely to eventually prompt the Fed to change its ongoing loose cycle.

One key factor behind the surge in gold prices earlier this year was the ongoing geopolitical tensions, especially the escalating conflict between Israel and Hamas, as well as the prolonged war in Ukraine.

Whenever there is news of worsening conflict situations, investors flock to safe-haven assets like gold. Unfortunately, there are no signs that these crises will be resolved in the short term. Piovano believes this should set a floor for further selling pressure on gold.

Latest technical outlook on gold

Piovano noted that gold prices are expected to retest the recent low point of $2536 per ounce since mid-November. If gold prices continue to fall, the next target may be the September low of $2471 per ounce, followed by the key 200-day Simple Moving Average (SMA) at $2397 per ounce.

Piovano stated that if this area cannot hold, further downside may target $2353 per ounce (July low), followed by the June low of $2286 per ounce and the May low of $2277 per ounce. Breaking below these levels could pave the way for gold prices to further decline to the March low of $2146 per ounce, or potentially the 2024 low of $1984 per ounce touched on February 14th.

(Spot gold daily chart source: FXStreet)

On the upside, Piovano added that gold price resistance may be near the 55-day moving average of $2638 per ounce. If gold price can break above this level, its targets could be the historical high of $2790 per ounce set at the end of October, Fibonacci extension levels of $3009 per ounce, $3123 per ounce, and $3288 per ounce from the 2024 uptrend.