24K99 News On Monday (November 25th), in the afternoon of the Asian market, spot gold maintained a sharp decline trend during the day, with the current price near $2662 per ounce, a daily plunge of over $53. FXStreet analyst Haresh Menghani's latest article on Monday provides analysis of the technical trend in gold prices.
Menghani wrote that gold prices touched near a three-week high of $2721-2722 per ounce in the Asian session on Monday before falling back, currently appearing to have ended a five-day rally. The election of U.S. President Trump nominated Bessent as Treasury Secretary, removing a major uncertainty point for the market. In addition, there are reports that Israel is about to reach a ceasefire agreement with the Lebanon military organization Hezbollah, boosting investor confidence. This can be clearly seen from the optimistic market sentiment, pushing the safe-haven gold price to near $2650 per ounce.
Menghani added that there are expectations that Trump's proposed policies may reignite inflation and limit the Fed's room for further rate cuts, which is another factor weakening gold prices.
On November 22nd local time, U.S. President-elect Trump chose Bessent to be the U.S. Treasury Secretary, nominating one of his largest financial supporters to be the top economic official in his second government.
Trump called Bessent one of the 'world's most important international investors, as well as a geopolitical and economic strategist,' saying he is 'widely respected.' Trump stated, 'He will help me lead the United States into a new golden age, solidifying our position as the world's leading economic force, innovation and entrepreneurship center, capital destination, while undoubtedly always maintaining the status of the U.S. dollar as the world's reserve currency.'
According to the report by the prominent U.S. website Axios on Monday, two Israeli senior officials and two U.S. officials told Axios that Israel and Lebanon are about to reach a ceasefire agreement to end the conflict between Israel and Hezbollah.
According to reports, the ceasefire agreement draft includes a 60-day transition period, during which the Israeli army will withdraw from the south of Lebanon, the Lebanese army will deploy in areas near the border, and Hezbollah will move heavy weapons north of the Litani River. The draft agreement includes a U.S.-led supervisory committee responsible for overseeing the agreement's implementation and handling violations.
Israeli and American officials said that the USA has agreed to provide Israel with a guarantee, including support for Israeli military action against imminent threats from Lebanese territory, as well as taking action to disrupt Hezbollah's military presence near the border or smuggling heavy weapons.
How to trade gold?
From a technical perspective, Menghani pointed out that a sharp intraday decline will pull gold prices down below the 23.6% Fibonacci retracement level of the strong uptrend since November 14, reaching a two-month low. However, the subsequent decline stalled near the 100-periodSimple Moving Averagesimple moving average (SMA) area, around $2660-2658 per ounce.
At the same time, the oscillating indicator on the daily chart has recovered from the negative zone and remains in the positive zone on the 4-hour chart. This makes put traders cautiously wait for some follow-up selling and a break below the 100-period SMA and 38.2% Fibonacci level (near $2650 per ounce) before placing new bets.
(Spot gold 4-hour chart source: FXStreet)
Menghani stated that if gold prices fall below the above levels, prices may accelerate towards the $2630-2629 per ounce area (or 50% Fibonacci retracement level), and then further down to the $2610-2608 per ounce region (61.8% Fibonacci level).
On the other hand, Menghani added that the 2677-2678 dollar/ounce region (23.6% Fibonacci level) seems to be a short-term obstacle for the gold price, followed by the 2700 dollar/ounce level.
If breaking above the aforementioned resistance, the next obstacle for the gold price lies at the high point during Monday's Asian session (near 2721-2722 dollars/ounce), if this area is breached, the gold price may accelerate its rebound towards the resistance zone of 2748-2750 dollars/ounce. This momentum may further extend to retest the historical peak near 2790 dollars/ounce touched at the end of October.
At 14:06 Beijing time, spot gold was reported at 2662.47 dollars/ounce.
