#GoldTechnical analysis#24K99 News: In the early European session on Monday (November 18th), spot gold maintained a strong intraday rise, with the current price near $2584 per ounce, up more than $21 intraday. FXStreet senior analyst Dhwani Mehta wrote on Monday, analyzing the technical trend of gold price.
Driven by safe-haven buying due to geopolitical tensions, the price of gold quickly rose after the start of Monday's Asian session, reaching a high of $2597.29 per ounce during the Asian market session.
Mehta wrote that gold rebounded strongly early Monday and approached the key level of $2600 per ounce, as the escalating geopolitical tensions between Russia and Ukraine posed imminent risks, prompting buyers to return.
Mehta pointed out that from atechnical aspects perspective, gold has held above the key level near $2550 per ounce.ResistanceOn the daily chart,Relative Strength Index(RSI) testing the oversold zone and rebounding.
According to reports from the united kingdom's Reuters, the Biden administration on Sunday allowed Ukraine to use American-made weapons to strike deep into Russia, marking a significant reversal in Washington's policy regarding the Ukraine and Russia conflict.
Sources said Ukraine plans to launch its first long-range strikes in the coming days but is unwilling to disclose details for operational security reasons.
Additionally, on Sunday night, Russia launched large-scale attacks on Ukraine's energy infrastructure, resulting in at least 10 deaths, with some civilian buildings also being targeted.
Mehta pointed out that, against the backdrop of ongoing conflicts between Israel and Iran, the market remains cautious about further escalation of tensions between Russia and Ukraine, prompting safe-haven funds to flow into gold.
Mehta stated that with no important economic data released on Monday, current attention remains focused on the upcoming speech by Chicago Fed President Charles Evans. Developments in geopolitics will also be closely watched to identify any significant impacts on traditional safe-haven asset gold.
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Mehta pointed out that the short-term technical outlook for gold prices remains largely unchanged, as long as the 14-day Relative Strength Index (RSI) remains bearish, any attempt at recovery could be short-lived. However, the recent rise of this leading indicator proves that the rebound in gold prices from the key support level of $2548 per ounce is reasonable, which is a convergence of the 100-day Simple Moving Average (SMA) and the low point on September 18th.
As a result, gold prices will challenge the $2600 per ounce level. The closing price of gold at this level is crucial for further upward movement towards the high of November 13th at $2619 per ounce.
Looking further ahead, the psychological level of $2650 per ounce may curb the upward momentum. The 50-day moving average is close to this level, making it a strong resistance level.
(Spot gold daily chart source: FXStreet)
On the other hand, Mehta added that the short-term resistance of the gold price can be seen at the above-mentioned confluence support level of $2548 per ounce. If it continues to break below this level, it will initiate a new downtrend and fall towards the key level of $2500 per ounce. The next put target for the gold price is the low point of $2472 per ounce on September 4th.
At 15:51 Beijing time, spot gold was trading at $2584.48 per ounce.
