Gold price tested above $2,085, the highest level in the last three weeks. Although it later lost altitude, it managed to carry its earnings momentum to the fifth day in a row. Attention is on the medium-term US Unemployment Claims data for the gold price to rise further. In this environment, analysts draw attention to critical levels for gold.
Gold continues to rise with the support of the dovish Fed
cryptokoin.comAs you follow from , the gold price finds additional support with the weakening of the US Dollar. Investors are rushing into global stocks in anticipation of aggressive interest rate cuts by the Fed next year. Additionally, China is committed to supporting stable growth by expanding domestic demand. Liquidity injections by the People’s Bank of China (PBOC) are increasing risk appetite at the expense of the US Dollar.
Therefore, the gold price ignores the modest recovery in US Treasury yields. Thus, it made an upward move towards the $2,100 barrier on Thursday. At the time of this writing, the US Dollar Index (DXY) is hovering around 100.75. Therefore, DXY is flirting with the lowest levels in the last five months. Benchmark 10-year US Treasury bond yields have jumped from their lowest levels in recent months. Currently, it is trading at 3.81%, up 0.50% during the day. All eyes are now on the mid-term US Unemployment Claims data. These data are important for a new upward increase in the gold price. Meanwhile, traders remain wary of exaggerated moves due to weak liquidity conditions.
Gold price technical analysis: These levels are critical
Market analyst Dhwani Mehta analyzes the technical outlook for gold as follows. When we look at it from a short-term technical perspective, gold continues to trend upwards with the influence of bullish indicators. Gold price broke above the ascending trend line resistance at $2,080 intraday. However, it needs a daily close above this level to extend the uptrend towards the all-time high of $2,144. Meanwhile, gold buyers will face stiff resistance at the $2,100 and $2,120 levels ahead. The 14-day Relative Strength Index (RSI) indicator is pointing north above the middle line. This adds confidence to the recent rise.
Any pullback in the gold price could offset initial demand at the previous day’s low of $2,061. A correction below this is likely to extend towards the $2,050 round figure. The last line of defense for gold buyers stands at the 21-day Simple Moving Average (SMA) at $2,035.
Gold price technical outlook: Bullish
Given the mix of economic signals and geopolitical issues, gold’s short-term outlook is bullish, according to market analyst James Hyerczyk. Expected interest rate cuts and ongoing global uncertainties appear poised to keep gold on an upward trajectory. Gold’s current daily high of $2,084.80 is above both the 200-day and 50-day moving averages. Thus, it indicates a strong upward trend. This position is above the 200-day moving average of $1,960.22 and the 50-day moving average of $2,003.69. Hence, it indicates a bullish trend in the market.
The gold price breaking the main support level of $2,009.00 further strengthens this bullish view. Although it is below the major resistance at $2,149.00, the price remains significantly above the minor support level at $2,067.00. It is important that the current price lies between these critical support and resistance levels. Because this configuration indicates a stable upward momentum. Considering these technical indicators, overall market sentiment for the gold price is positive. Therefore, this reflects investor confidence and continued growth potential.
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