#Gold Technical Analysis# On Monday (November 18), during the Asian trade session, spot gold surged over $10 in a short time. The gold price recently reached a high of $2575.60 per ounce. Nicholas Kitonyi, an analyst from the well-known financial website FXDailyReport, wrote an analysis of the future trend of gold.
(Spot gold 5-minute chart Source: 24K99)
Kitonyi noted that after gold prices rebounded from the trendline resistance at $2536 per ounce last Thursday, they have now risen above $2569. In the 60-minute chart, the gold price has also completed an upward breakout from the descending channel.
The analyst pointed out that recent important news regarding the geopolitical situation has increased market risk aversion, thus propelling gold prices to surge immediately after opening.
According to the Ukrainian newspaper Kyiv Post, on November 17 local time, Ukraine reported a large-scale missile and drone attack by Russia. Explosions were reportedly heard in Kyiv, Kropyvnytskyi, Cherkasy, Dnipro, Kryvyi Rih, Odesa, and Zaporizhia.
Ukrainian President Zelensky stated on his official social media platform that on that day, the Russian army attacked Ukraine with approximately 120 missiles and 90 drones, while Ukrainian air defense forces destroyed over 140 aerial targets. The target of the Russian military was Ukraine's entire energy infrastructure.
The Ukrainian state railroad company reported that several railroad sections in southern, western, and northeastern Ukraine experienced power outages due to large-scale attacks by Russian forces, causing delays in some passenger train operations.
Ukrainian Foreign Minister Andriy Sybiha stated that the missile and drone attacks on that day were among the largest attacks launched by Russia against Ukraine.
In addition, the Kyiv Post quoted the latest statement from the Polish Armed Forces Command, which said that due to the missile attacks by Russia on Ukraine, Poland had mobilized and activated all available aircraft and air defense systems to respond.
On November 17, the Russian Ministry of Defense announced that the Russian army had carried out concentrated strikes using long-range precision-guided weapons against key energy infrastructure and military industry enterprises in Ukraine that are essential for the operation of the military industrial facilities. The report stated that all established strike missions had been completed.
In the Middle East, Israel attacked a multi-story residence building in Beit Lahiya, northern Gaza, on November 17, resulting in 30 deaths, including children, and many others injured.
According to Reuters, civil defense spokesman Basar said that they found 30 bodies among the rubble of the residence building, including children and women. "The chances of rescuing more injured persons are diminishing due to the ongoing gunfire and shelling."
Hamas accused Israel of committing a "massacre," stating that this is "a continuation of genocidal warfare and an act of retaliation against unarmed civilians."
Last month, the Israeli army sent tanks into Beit Lahiya and the nearby towns of Beit Hanoun and Jabalia. The Israeli military stated that this action was aimed at combating Hamas militants who launched attacks in order to prevent them from regrouping.
Two pictures of the technical prospects of gold
In terms of short-term trends, Kitonyi indicated that, from a technical perspective, based on the 60-minute chart, gold prices have completed an upward breakout from the downward channel. The 14-hour Relative Strength Index (RSI) has also rebounded, recovering from an oversold state.
Therefore, bullish investors will seek to extend the current rebound in gold prices, aiming for $2583 per ounce, or even higher at $2600 per ounce.
On the other hand, bearish investors will look to take profits when gold prices retreat to around $2553 per ounce, or lower at $2536 per ounce.
(Spot gold 60-minute chart source: FXDailyReport)
However, Kitonyi pointed out that on the daily chart, gold prices are trading within a downward channel. The 14-day RSI seems to support a long-term bearish tendency, as it is closer to being in an oversold condition.
Therefore, bearish investors will seek to extend the recent pullback in gold prices, targeting a decline to $2462 per ounce, or lower at $2362 per ounce.
On the other hand, bullish investors will look to take profits when gold prices rebound to around $2690 per ounce, or higher at $2785 per ounce.
(Spot gold daily chart source: FXDailyReport)
Spot gold closed down over 4% last week, reporting at $2562.92 per ounce.
At 07:39 Beijing time, spot gold is quoted at $2575.13 per ounce.
