#GoldTechnical analysis.#24K99 News: On Monday (January 6), in the late afternoon of Asia, spot Gold suddenly dropped significantly in a short period, with the current Gold price falling to around $2632 per ounce, a decline of $15 from the earlier intraday high of $2647.43 per ounce. FXStreet Analyst Haresh Menghani wrote an analysis on Monday regarding the technical trends of Gold prices.

(Spot gold 30-minute chart, source: 24K99)

Menghani pointed out that Gold prices have fallen for the second consecutive Trade day, as the Federal Reserve's hawkish signals continue to support rising US Treasury yields and put some pressure on Gold prices.

The US dollar remains close to the two-year high reached last Thursday, as the Federal Reserve issued hawkish signals indicating fewer rate cuts by 2025. Additionally, optimism over the expansionary policies of President-elect Donald Trump continues to support the US dollar, which is seen as a headwind for Gold.

Regarding the situation in the Middle East, a senior official from Hamas told Reuters on January 5 that the organization is ready to release 34 Israeli hostages as an important part of the ceasefire agreement. This news has also increased market risk appetite, negatively affecting the trend of Gold prices.

According to Reuters, an unnamed Hamas official reiterated that any agreement depends on whether Israel agrees to withdraw from Gaza and reach a permanent ceasefire.

A senior Hamas official revealed: "Hamas has agreed to release 34 Israeli prisoners listed by Israel, which is part of the first phase of the prisoner exchange agreement."

Israel previously noted that indirect negotiations regarding a ceasefire and the release of hostages have resumed in Qatar. Mediators Qatar, Egypt, and the USA have been trying for months to facilitate an agreement between Israel and Hamas to end the war.

Menghani stated that traders are now looking forward to the release of the USA services PMI and factory order final values to gain some momentum later in the North American market on Monday.

Spot Gold closed down sharply last Friday, falling by $18.35, a decrease of 0.70%, settling at $2639.48 per ounce.

How to trade gold?

Menghani pointed out that, from a technical perspective, any subsequent decline in gold prices may find support at the 100-day.Simple Moving Average(SMA) found decent support nearby, currently this area is around $2625 per ounce.

The next support for Gold prices is at the $2600 per ounce level. If this level is broken, Gold prices could fall to the monthly volatility low from December, which is around $2583 per ounce. Some follow-up selling will be seen by bearish traders as a new trigger, paving the way for a larger decline.

(Spot gold daily chart source: FXStreet)

On the other hand, Menghani added that momentum breaking above the Asian session high around $2647 per ounce could push Gold prices up to the $2665 per ounce area or even higher over the coming weeks.

Subsequent rises in Gold could further extend towards the resistance level near $2681-$2683 per ounce, before advancing towards the $2700 major level per ounce. The latter should be a critical point, if decisively breached, it will lay the foundation for a continuation of the upward trend in Gold prices over the past two weeks.

As of 13:39 Peking time, spot Gold is quoted at $2632.40 per ounce.