#GoldTechnical analysis.#24K99 News On Monday (December 23), in the early European market, spot Gold maintained its intraday rebound trend, with the current price around 2630 USD/ounce. FXStreet Senior Analyst Dhwani Mehta wrote about the Gold price.intraday tradingAnalysis.
Mehta noted that Gold prices are expected to continue their recovery momentum from the monthly low on Monday, with buyers holding above the 2600 USD/ounce level. Gold traders may gain insights from the broader market sentiment before placing new bets on Gold.
However, Mehta pointed out that fromTechnical aspectLooking at it, Gold prices are below the 21-day moving average and daily chart.Relative Strength Index(RSIIn this bearish case, Gold prices are still in a 'Sell on rally' trade.
On this trading day, investors will focus on the USA Conference Board Consumer Confidence Index, which may trigger a significant movement in the Gold market.
At 23:00 on Monday, Beijing time, the USA December Conference Board Consumer Confidence Index will be released, expected to be 113.0, compared to the previous value of 111.7.
The USA Conference Board Consumer Confidence Index has been rising over the past two months, while one of its sub-indicators - the 'Job Difficulty' indicator has been declining during the same period. The latter is closely correlated with the official unemployment rate, so if this sub-indicator declines further in December, it will indicate that employment growth in the USA is accelerating, which may lead to a rebound in the dollar and thus negatively impact Gold prices.
How to trade gold?
Mehta pointed out that the short-term technical outlook for Gold prices remains largely unchanged, as the downward trend still holds, with the 14-day Relative Strength Index (RSI) staying below 50.
Mehta stated that recovering the 21-day Simple Moving Average (SMA) of $2645 per ounce at the daily close is crucial for reversing the downward trend. If this level is broken, Gold prices will test the 50-day moving average at $2669 per ounce.
If Gold rises further, the $2700 per ounce mark will challenge Put commitments.
(Spot gold daily chart source: FXStreet)
On the other hand, Mehta added that if the recovery fades, Gold sellers will retest the 100-day moving average resistance turned Support at $2610 per ounce; once this level is broken, the monthly low of $2583 per ounce will come under examination.
If Gold continues to decline, the lows of November 15 and November 14 (at $2555 per ounce and $2537 per ounce, respectively) may provide support.
As of 16:32 Peking time, spot Gold is quoted at 2630.03 USD per ounce.
