#GoldTechnical analysis.#24K99 News On Monday (December 23), at the end of the Asian market, spot Gold continued its rebound trend, with the current gold price around $2632 per ounce, strongly rising nearly $10 during the day. FXStreet Analyst Haresh Menghani published an article on Monday analyzing the technical trend of gold prices for the day.
Menghani wrote that during the Asian Trade session on Monday, the price of gold continued its rebound trend. The USD remains in a defensive position below the two-year high reached last Friday, which has been a key factor driving the rise in gold. In addition, the prolonged war between Russia and Ukraine and the geopolitical risks triggered by tensions in the Middle East further support safe-haven Precious Metals.
However, Menghani pointed out that the Federal Reserve's hawkish stance supports the rise in USA Treasury yields, which, along with the generally optimistic tone of the stock market, seems to limit the increase in gold. Therefore, it would be prudent to wait for strong follow-up Bids before preparing for further increases.
Gold traders are now looking forward to the release of the Conference Board Consumer Confidence Index in search of short-term momentum.
At 23:00 Beijing time on Monday, the USA December Conference Board Consumer Confidence Index will be released, with an expectation of 113.0, compared to the previous value of 111.7.
The Latest Technical Analysis of Gold
Menghani pointed out that, from a technical perspective, the price of Gold has broken through the 23.6% Fibonacci retracement level of its recent pullback from a one-month high, which is favorable for Call traders. However, the oscillators on the daily and 4-hour charts are giving bearish signals, which requires caution before positioning for further increases in the price of Gold. Therefore, any subsequent upward movements may be viewed as selling opportunities, and the upside appears to be limited.
The 38.2% Fibonacci retracement level (around $2637 per ounce) now seems to constitute a short-term hurdle; next is the resistance zone of $2643-$2647 per ounce, with the 200-period simple moving average (SMA) also in this area on the 4-hour chart.Simple Moving Average(SMA) is also in this area.
Menghani stated that $2643-$2647 per ounce should be a critical area, and if effectively breached, it should pave the way for further strengthening of Gold prices.
(Spot gold 4-hour chart source: FXStreet)
On the other hand, Menghani added that the $2616-$2615 per ounce area (or 23.6% Fibonacci level) might provide short-term support. Subsequently, the $2600 per ounce integer level is present, and if this level is breached, the Gold price may re-test the monthly volatility low, which is around the $2583 per ounce level reached last week.
Some subsequent sell-offs will be seen by bears as a new trigger, setting the stage for a more significant decline in Gold prices in the near future.
As of 14:44 Peking time, spot Gold is quoted at 2632.41 USD/ounce.
