On Monday (November 25), after the start of the trading session in asia, spot gold fluctuated violently, with gold prices once plummeting to 2691.68 usd/ounce, but then rebounding sharply, reaching a high of 2721.38 usd/ounce. Renowned financial website FXDailyReport analyst Nicholas Kitonyi wrote an analysis on the future trends of gold.

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

Kitonyi wrote that gold continued to rise and reached a two-week high. On the 60-minute chart, gold prices are trading within an upward channel. Gold continues to trade above the 100-hour moving average. Therefore, gold prices are about to enter the overbought level on the 14-hour relative strength index (RSI).

The usd gap opened lower in the asian market on Monday, currently dropping to 106.80, down 70 points for the day. The weakening of the usd prompted gold prices to rebound rapidly after a sharp drop at the opening.

Bloomberg in the usa pointed out that the newly elected president Donald Trump nominated Scott Bessent as the Secretary of the Treasury, which has cooled the recent upward momentum of the dollar.

Traders believe that Trump's choice of Bessent as Treasury Secretary was a well-considered decision, which eased some of the more fervent bets following Trump's victory, leading to a decline in the dollar.

Bloomberg reported that Monday's early trading in Asia indicated that the elements of the so-called Trump Trade were cooling following Trump's appointment of Bessent to oversee the US government debt market, taxation, and economic sanctions. Although Bessent stated he would support Trump's tariff and tax reduction plans, investors expect him to prioritize economic and market stability over political scoring.

Last Friday, gold prices broke above the $2700 per ounce mark for the first time in over two weeks, driven by escalating tensions in the Russia-Ukraine crisis.

Spot gold closed last Friday with a surge of $46.54, an increase of 1.74%, at $2715.85 per ounce.

Gold prices soared nearly 6% last week, marking the best weekly performance since March 2023, spurred by a wave of bank crises sweeping the global market, boosting demand for safer assets.

Allegiance Gold's Chief Operating Officer Alex Ebkarian stated: "The escalation of the Russia-Ukraine conflict appears to be evolving into a confrontation between Russia and the United States. War will certainly enhance short-term safe haven appeal."

In response to Ukraine's first long-range missile attack on Russian territory, President Putin of Russia revised the nuclear weapon guidelines, lowering the threshold for a nuclear response to broader conventional attacks, leading to heightened geopolitical tensions.

Latest news also emerged from the Middle East. According to a report by the United Kingdom's Reuters on Sunday (November 24), Ali Larijani, a senior advisor to Iran's Supreme Leader, stated in an interview that Iran is preparing to 'respond' to Israel.

(Screenshot source: Reuters)

On October 26, Israeli warplanes launched three rounds of airstrikes against Iranian military targets; in the previous weeks, Iran had fired about 200 ballistic missiles at Israel.

After Israel took action against Iran, the USA urged Iran to stop attacking Israel to break the cycle of violence and avoid further escalation of the situation.

However, Iran had previously vowed to respond to Israel's attack.

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 are trading within an upward channel. The 14-hour relative strength index (RSI) also supports a short-term call tendency as it approaches overbought conditions.

Therefore, gold bulls will look for gold prices to continue the current rebound trend and rise towards $2795 per ounce.

On the other hand, gold bears will seek to take profits when gold prices fall to around $2665 per ounce, or lower at $2622 per ounce.

(Spot gold 60-minute chart source: FXDailyReport)

Kitonyi pointed out that on the daily chart, the price of gold is also trading within an ascending channel. The 14-day RSI has recently bounced back, approaching the overbought condition of this indicator.

Therefore, gold bulls will seek the gold price to continue its recent rebound trend and rise towards $2845 per ounce, or higher at $3010 per ounce.

On the other hand, bears will seek to take profits when the gold price retraces to around $2570 per ounce, or lower at $2393 per ounce.

(Spot gold daily chart source: FXDailyReport)

As of 07:56 in Peking, spot gold is quoted at $2720.01 per ounce.