Holiday trade pushed gold higher at a time when global markets were closed. Low Treasury yields and the dollar are an upside catalyst for the gold price. Additionally, geopolitical tensions contribute to gold’s cautious rise.
Gold price rises in light holiday trading
The shiny metal is on the rise amid light holiday trading following the Christmas break. Markets in key regions such as Australia, New Zealand, Hong Kong and the Eurozone are closed for Boxing Day. Therefore, the transaction volume is quite low. Experts expect this trend of infrequent transactions to continue throughout the remaining weeks of the year. At least, they predict it will last until the New Year’s holiday.
At the time of writing, the gold price is trading at $2,064.63, up 0.47%. Similarly, February Comex gold futures are up 0.33% at $2,075.90. These numbers point to a noticeable, albeit modest, upward movement in gold prices this holiday season.
Outlook for gold: Cautiously bullish
This increase in gold prices is supported by lower movements in US Treasury yields and the US Dollar. cryptokoin.comAs you follow from , the market is betting that the Federal Reserve will cut interest rates in March 2024. Rising expectations for this are emerging as the key factor behind this move. The latest US personal consumption expenditures data, which came in softer than expected, also reinforced these dovish expectations.
The current market scenario is bullish for the gold price. However, traders remain cautious. Analysts say the recent decline in inflation is mainly due to the decline in goods prices. He also notes that this trend may not continue in the long term. Additionally, rent inflation continues to remain high, although it is expected to decrease in the coming months. On the other hand, ongoing geopolitical tensions, particularly US military actions in response to attacks in Iraq, contribute to gold’s appeal as a safe-haven asset. Investors are watching these developments closely as they have the potential to significantly impact the near-term price course of gold.
Gold price technical analysis: Bulls are strong in technicals!
Market analyst James Hyerczyk interprets the technical outlook of gold as follows. Gold is currently trading at $2,063.94. So, it is above both the 200-day moving average of $1,958.99 and the 50-day moving average of $1,97.80. This placement indicates a strong uptrend in the short and medium term.
Gold price is trading near the minor resistance level at $2,067.00. A break above this point could lead to more upside momentum, potentially targeting the key resistance at $2,149.00. Conversely, if it pulls back, the main support at $1,987.00 will act as an important threshold.
Its current price position, combined with its stance above the key moving averages, reflects an overall bullish market sentiment for the gold price. This indicates the potential for the upward movement to continue.
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