Technical Analysis

GOLD Analysis – December 01, 2021

By LonghornFX Technical Analysis
Dec 1, 20213 min

Gold’s Daily Price Analysis

Gold prices ended the day at $1775.15 per ounce after reaching a top of $1811.30 and a low of $1771.25. Gold fell for the third session in a row on Tuesday, reaching its lowest level since November 4th. Despite the US dollar's decline, gold prices remained low for the day, despite additional aggressive statements from US Federal Reserve Chairman Jerome Powell. The US Dollar Index, which measures the dollar's value against a basket of six major currencies, fell to 95.52 on Tuesday, while 10-year Treasury rates fell for the fifth straight session to 1.41 percent, the lowest level since September 24th, 2014.

Powell announced on Tuesday that US central bankers would discuss completing bond purchases in December, which is a few months sooner than expected. He cited a healthy economy, stagnant labor-force growth, and high inflation likely to endure until mid-2022. These statements on the appearance of the new-coronavirus type caught the market off guard and hurt gold, dragging the precious metal even lower.

Earlier this month, the Fed began lowering its monthly purchases of Treasury and mortgage-backed securities from $120 billion to a rate that would put it on target to finish the wind-down by mid-2022. On Tuesday, Powell stated that the Fed might propose speeding the taper by a few months at the upcoming monthly meeting, sparking a new sell-off in gold prices despite the US dollar's decline.

The US dollar was weak on Tuesday as a result of poor macroeconomic data. On the statistics front, the HPI fell to 0.9 percent at 19:00 GMT, compared to the anticipated 1.2 percent, weighing on the US dollar, which weighed on further declines in gold prices. The S&P/CS Composite-20 HPI dipped to 19.1% from 19.3% predicted, impacting the US dollar and leading gold prices to fall even lower.

At 19:45 GMT, the Chicago PMI fell to 61.8 from 67.1 expected, weighing on the US dollar and limiting the decrease in gold prices. At 20:00 GMT, the CB Consumer Confidence fell to 109.5 from 110.8, weighing on the US dollar and causing gold to fall further.

GOLD Intraday Technical Level

Support Resistance

1760.50 1800.55

1745.85 1825.95

1720.45 1840.60

Pivot Point: 1785.90

GOLD - Technical Outlook

Gold technical outlook turns bearish as it has violated a strong support level of $1,784 level. Closing of candles below the pivot point support become resistance level of 1,785 is supporting selling bias in gold. The precious metal gold is gaining support at 1,769 level and a break below this exposes it towards 1,760 and 1,745 level.

On the other hand, a break of the $1,782 level might spark an uptrend until the $1,798 and 1,808. The RSI is below 50, indicating a negative turnaround in gold. As a result, bearish bias dominates below $1,784 and vice versa. All the best!


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