After the Fed. Meeting last week, gold climbed above 2000, while the market refocused on an early rate cut next year. Powell's dovish comments further tuned the market's sentiments; the latest CME FedWatch tools indicate that there is currently a close to 70% chance of a 1/4 basis point rate cut next March, while there is almost 95% chance of a 1/4 basis point rate cut in May next year. On the day of the Fed meeting, gold prices rose nearly $50(1), and technically, it is currently neutralizing the selling pressure that occurred from the 2146 drop on December 4th.
1-hour chart - In the past 48 hours, gold prices have been oscillating within the 2020-50 range(2). There hasn't been a significant trading volume that would lead to a breakout from the range. Until gold can break free from this range, take advantage of the S-T range(2). There haven't been any important economic data releases at the beginning of this week. However, if further consolidation occurs later this week, the next range to watch out for would be between 2000-20(4). The descending trend line(3) still needs confirmation but can still serve as a reference for S-T strategies.
Daily chart - Currently, gold prices are finding support at 2017 - 20 MA(5). There is still relatively strong selling pressure around the 2035-47 range (6). For S-T trading on the daily chart, 2017-47 should be the range for now. If the gold price can close within or above the 2035-47 range by the end of this week, it would be the first signal that gold prices are preparing to test a new high.
S-T Resistances:
2047
2038-40
2030-31
Market price: 2021
S-T Supports:
2017
2007-10
2000
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1-hour chart - In the past 48 hours, gold prices have been oscillating within the 2020-50 range(2). There hasn't been a significant trading volume that would lead to a breakout from the range. Until gold can break free from this range, take advantage of the S-T range(2). There haven't been any important economic data releases at the beginning of this week. However, if further consolidation occurs later this week, the next range to watch out for would be between 2000-20(4). The descending trend line(3) still needs confirmation but can still serve as a reference for S-T strategies.
Daily chart - Currently, gold prices are finding support at 2017 - 20 MA(5). There is still relatively strong selling pressure around the 2035-47 range (6). For S-T trading on the daily chart, 2017-47 should be the range for now. If the gold price can close within or above the 2035-47 range by the end of this week, it would be the first signal that gold prices are preparing to test a new high.
S-T Resistances:
2047
2038-40
2030-31
Market price: 2021
S-T Supports:
2017
2007-10
2000
If you like my work, please give me a thumbs up 👍.
Feel free to leave a comment; share your thoughts 🤟.
P. To
P. To