#Gold Technical Analysis#24K99 News. During the New York trading session on Tuesday (December 3), the international financial markets experienced fluctuations due to the impact of the 'martial law' turmoil in south korea, with the gold market also showing a significant response. The martial law in south korea stimulated safe-haven demand, leading to a daily high for gold.
south korea President Yoon Suk-yeol delivered an emergency speech at the Blue House in Seoul on Tuesday evening local time, announcing the implementation of emergency martial law. Yoon Suk-yeol stated that this action was taken to eradicate 'pro-North forces' and maintain 'free constitutional order'.
This is the first 'emergency martial law' in south korea in nearly 44 years since 1980. Upon hearing the news, spot gold prices surged to $2,655.64 per ounce at one point.
An analyst at Bloomberg mentioned that the political unrest in south korea boosted demand for safe-haven assets, leading to an increase in gold prices.
Subsequently, as south korea President Yoon Suk-yeol announced the lifting of the emergency martial law, gold prices retraced gains, but still closed higher for the day.
Yoon Suk-yeol stated in a live broadcast, 'Last night at 11 o'clock, in order to combat the anti-state forces that paralyzed the nation's essential functions and disrupted the free democratic constitutional order, I declared a state of emergency with a resolute will to save the nation.' However, because the parliament requested the lifting of martial law, the troops deployed in the martial law were withdrawn.
As of the Tuesday market close, spot gold rose by 0.2%, closing at $2,643.38 per ounce.
After the brief martial law ended, on Wednesday, the south korea stock market opened as usual, with the south korea KOSPI index opening down 1.97%.
South Korea's government stated that overnight forex and overseas assets have stabilized, and will take all possible measures as needed to support the market, providing unlimited liquidity until the market returns to normal.
How to trade gold?
Analyst Christian Borjon Valencia from FXStreet pointed out that the upward trend of gold remains unchanged, with the gold price yet to break above the 50-day Simple Moving Average (SMA) of $2688 per ounce. Once this level is breached, it may challenge the $2700 per ounce level for buyers.
If the gold price conquers the key level of $2700 per ounce, this will set the target towards the peak of the year so far at $2790 per ounce.
(Spot gold daily chart source: FXStreet)
Valencia added that conversely, if the gold price plunges below the $2600 per ounce level, it may extend down to the 100-day moving average of $2576 per ounce. If gold weakens further, the next support level will be $2550 per ounce, followed by the fluctuation low of $2536 per ounce on November 14th.
