Gold prices on Thursday hovered around the key $1,800 level ahead of the year-end holidays as the dollar stabilizes and the appetite for riskier assets rises as fears over the Omicron coronavirus variant ease.
Daniel Pavilonis: Next year will be good for gold prices
Spot gold rose 0.4% to $1,809.89 an ounce, while U.S. gold futures rose 0.5% to $1,811.70 an ounce. Assessing the current situation, Daniel Pavilonis, senior market strategist at RJO Futures, comments, “This is just noise on a low volume day before Christmas.” The strategist adds that next year will be good for gold prices, especially as high inflation is likely to continue.
cryptocoin.com As we reported earlier, the dollar index, which shines slightly more than bullion, has stabilized, making the metal less attractive to overseas buyers. But the dollar was close to a one-week low and its recent pullback has helped keep gold on track for a small weekly gain.
Global stocks, bond yields and riskier currencies hit all-time highs on Thursday as investor confidence rose amid strong US economic data alongside signs that Omicron may be less severe than feared. Nicholas Frappell, global managing director of ABC Bullion, points out the following technical levels for gold prices:
Gold faces technical resistance at $1,815 and $1,826 and geopolitical risks await gold’s potential support despite the waning narrative.
Gold technical analysis: Trying to pull upwards
Gold ended a two-year uptrend in August 2020. A modest pullback from there led to a sideways slide in March 2021. Prices are currently hovering near the midpoint of the choppy range that has been formed since then. It is unclear whether the recession will provide a basis for renewed gains or mark a pause before the move down from the 2020 high kicks in again.
According to market analyst Ilya Spivak, looking at the daily chart, gold prices are struggling to pull upwards with mid-range congestion near the $1,800 figure. Ilya Spivak points to support and resistance levels in his technical analysis:
A series of highs and lows are cautiously supporting gains in the well-established band of $1,677-1,917. The immediate resistance is at 1,808.16, followed by barriers at 1.834 and 1.871. Key supports are located at $1,750.78, $1,718.89 and $1,676.91.
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