#GoldTechnical analysis#24K99 News On Tuesday (November 19), during the Asian market, spot gold suddenly surged significantly, with the gold price just breaking through 2625 usd/ounce, increasing nearly 14 usd within the day. FXStreet senior analyst Pablo Piovano wrote an analysis on the technical trends of gold prices.

(Source: 24K99) 15-minute chart for spot gold.

Piovano wrote that after six consecutive days of decline, the gold price recovered to 2600 usd/ounce in the new week's trade and broke through this threshold, which is quite a positive start. At the beginning of this week, geopolitical tensions dominated the market.

As the rebound triggered by the trump trade lost momentum, the dollar showed a retracement, which also provided momentum for the rebound in gold prices.

Spot gold closed up $48.81 on Monday, an increase of 1.9%, reporting $2611.73 per ounce.

The dollar index (DXY), which tracks the dollar against six major currencies, fell by 0.5% to 106.20, having previously reached a more than one-year high of 107.07 last week.

Piovano pointed out that the resurgence of geopolitical factors, particularly those stemming from the Russia-Ukraine war, is the main driving force behind the recent surge in gold prices. Earlier reports indicated that the Biden administration "authorized" Ukraine to use American-made weapons to strike Russian territory.

According to reports from Reuters in the united kingdom, the government of President Joe Biden on Sunday allowed Ukraine to use American-made weapons to strike deep into Russian territory, marking a significant shift in Washington's policy concerning the conflict between Ukraine and Russia. Sources revealed that Ukraine plans to launch its first long-range attack in the coming days but hesitated to disclose details due to operational security concerns.

XM's chief analyst Raffi Boyadjian stated in a report that Biden's decision is a major development, and it comes as the usa and its allies are working to contain conflicts in the Middle East.

On Sunday night, Russia launched a large-scale attack on Ukraine's energy infrastructure, resulting in at least 10 deaths and some civilian buildings also being targeted.

Daniel Pavilonis, a senior market strategist at RJO Futures, stated: "Part of the reason for the surge in gold prices is President Biden's announcement to provide Ukraine with long-range missiles, allowing it to strike deep into Russian territory. I believe this has triggered some safe-haven demand for gold."

Short-term technical outlook for gold

Piovano noted that the daily chart of gold shows a bullish pattern around $2,550 per ounce.Simple Moving Average(SMA) rebounded, with the area approaching the November low of 2536 usd/ounce. However, the initial barrier above 2600 usd/ounce coincides with the Fibonacci retracement level of the annual rebound, which is expected to provide strong resistance.

(Spot gold daily chart source: FXStreet)

Piovano states that in the short term, the ongoing upward adjustment seems to continue based on the 4-hour chart.Relative Strength Index(RSI) The price rebounds but faces resistance around 55, while the average directional index (ADX) around 32 does not support a strong trend.

On the upside, Piovano points out that the initial resistance for gold price is at the 55-period SMA (2630 USD/ounce), after which, more significant resistance is at the 200-period SMA and 100-period SMA (2679 USD/ounce and 2684 USD/ounce respectively). On the downside, the important support for gold price is at 2536 USD/ounce.

As of 11:16 Beijing time, spot gold is quoted at 2625.40 USD/ounce.