#Gold Technical Analysis# 24K99 News On Wednesday (December 4), during the Asian trading session, spot gold remained stable, with the gold price currently around $2644 per ounce. FXStreet chief analyst Valeria Bednarik wrote an analysis on the technical outlook for gold.

Bednarik stated that the recent outlook for gold is neutral to put, and a directional breakout has not yet occurred.

During the New York trading session on Tuesday, due to the emergency order in south korea stimulating safe-haven demand, gold reached a daily high.

South korean President Yoon Suk-yeol delivered an emergency speech at the Presidential Office in Yongsan, Seoul on Tuesday evening, announcing the emergency order. Following the news, spot gold soared to $2655.64 per ounce.

Subsequently, as south korean President Yoon Suk-yeol announced the lifting of the emergency order, the gold price retraced its gains. By the close on Tuesday, spot gold was up 0.2%, closing at $2643.38 per ounce.

In this trading day, there are many event risks in the usa, including the ADP employment report, ISM services PMI, Federal Reserve Beige Book, and Federal Reserve Chairman Powell will give a speech. Among them, the ADP employment report and Powell's speech are the most focused.

At 21:15 Beijing time on Wednesday, the USA will release the November ADP employment change data. This data is known as the 'Little Nonfarm' and is expected to trigger significant market activity.

Authoritative media surveys indicate that the USA is expected to add 0.15 million ADP jobs in November. The previous ADP employment figure for October in the USA was an increase of 0.233 million.

FXStreet analyst Eren Sengezer stated that if the data exceeds expectations, it may rekindle optimism regarding Friday's non-farm employment data and lead to a decline in gold prices.

At 23:00 Beijing time on Wednesday, the US November ISM Non-Manufacturing Purchasing Managers' Index (PMI) will be released, expected to be 55.5.

At 21:45 Beijing time on Wednesday, St. Louis Fed President Bullard will deliver a speech. At 03:00 Beijing time on Thursday, the Federal Reserve will release the Beige Book on economic conditions.

At 02:45 Beijing time on Thursday morning, Federal Reserve Chairman Powell will be interviewed at the DealBook/Summit conference hosted by the New York Times.

Powell stated in his last speech in November that the Federal Reserve does not need to rush to lower interest rates, reasoning that the job market remains robust and inflation is still above the 2% target.

On November 14, local time, Federal Reserve Chairman Powell stated at a Dallas Fed event that the US economy has not sent any signals indicating the Fed needs to lower interest rates quickly, and the current strength of the economy allows the Fed to make decisions cautiously.

Powell pointed out at that time that the labor market remains robust but has gradually cooled from a clearly overheated state a few years ago, and it is no longer a significant source of inflation pressure. Inflation is closer to the long-term target of 2%, but has not yet been achieved.

Short-term technical outlook for gold

Bednarik wrote that, from a technical perspective, the daily chart for gold shows that prices remain confined to familiar levels. Momentum indicators are rising and breaking above the 100 level, but the relative strength index (RSI) is hovering around 48. Meanwhile, gold prices barely maintain above the bearish 20-day simple moving average (SMA), while the 100-day and 200-day moving averages continue to rise below the current gold price level, although losing previous strength, they are still trending upward.

Bednarik added that in the short term, based on the 4-hour chart, gold has a neutral to bearish stance. Gold prices have been hovering around the directionless 20-period SMA, while also fluctuating between the flat 100-period SMA and 200-period SMA. Finally, the technical indicators have slightly declined below the midline but lack sufficient strength to confirm that gold prices will face another wave of downward movement.

(Spot gold 4-hour chart source: FXStreet)

Valeria Bednarik provides the latest key support and resistance levels for gold price:

Support levels: $2626.70 per ounce; $2611.35 per ounce; $2598.70 per ounce

Resistance levels: $2655.50/oz; $2671.55/oz; $2688.65/oz.

At 11:35 Peking time, spot gold was reported at $2644.24/oz.