Daily Price Outlook

- Gold shows potential for a bullish correction, trading near $1,986 with a 0.2% increase, facing immediate resistance at $1,897.

- Key technical indicators like the RSI nearing oversold conditions and weakening bearish MACD momentum suggest a possible market reversal.

- Crucial support at $1,976 and resistance levels up to $2,051 will be instrumental in shaping Gold’s short-term market direction.

In the recent analysis of the Gold market as of December 12, the asset displays a modest upward trend, with its price currently at $1,986, reflecting a 0.2% increase over the past 24 hours. This subtle yet notable movement points to a potential shift in market sentiment, as observed in the 4-hour chart timeframe. The immediate resistance for Gold is identified at $1,897, a crucial juncture for bulls to overcome to sustain the upward momentum. Further resistance levels are marked at $1,953 and $2,051, each representing significant hurdles for a bullish continuation.

On the support side, the immediate level is observed at $2,105, providing a safety net against any potential bearish reversal. The subsequent support levels at $1,796 and $1,694 will play pivotal roles in underpinning Gold’s value in the event of a downturn. These levels are crucial for traders to monitor, as they will likely influence the asset's short-term trajectory.

From a technical standpoint, the Relative Strength Index (RSI) stands at 33, indicating that Gold is nearing oversold territory. This suggests a possible inflection point where the market may witness a reversal, especially if this trend persists. The Moving Average Convergence Divergence (MACD) values, with a MACD line at -2.841 and a signal line at -13.005, hint at a weakening bearish momentum. This could potentially pave the way for a bullish reversal in the near future. Moreover, the current value of the 50-Day Exponential Moving Average (EMA) at $1,991, being below Gold's price, signifies a short-term bearish trend, but also indicates room for an upward correction.

The observed chart patterns, particularly the formation of Doji candles around the $1,976 support level, suggest chances of a bullish correction. This pattern implies that maintaining above this support level could signal the beginning of a bullish reversal for Gold.

In conclusion, the overall trend for Gold appears bullish, especially if it sustains above the critical $1,975 level. Looking forward, the asset is likely to test higher resistance levels, particularly if it remains above this key support.

GOLD Price Chart – Source: Tradingview
GOLD Price Chart – Source: Tradingview

GOLD (XAU/USD) - Trade Idea 

Entry Price – Buy Above 1980

Take Profit – 2000

Stop Loss – 1965

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$2000/ -$1500

Profit & Loss Per Mini Lot = +$200/ -$150



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