Gold Analysis: Returning To A Downward Channel -

Gold Analysis: Returning To A Downward Channel

Nov 26, 2024Jeremy ParkinsonFinance0

For the second day in a row, gold prices are subject to selling operations, stabilizing around $2,604 per ounce at the time of writing the analysis.

Yesterday, gold prices were higher around the resistance level of $2,721 per ounce, which means that the price of gold bullion lost more than $100 in less than 48 hours.

According to gold trading companies’ platforms, since gold prices reached a peak of $2,800 per ounce earlier this month, gold prices have fallen by 5%. So far this year, gold prices are still up by about 27%.

Why did gold prices fall again?
Despite the shortened trading week for US holidays, Trump, as usual, ignited investor sentiment and the performance of financial markets. In addition, traders are monitoring key US economic data and the US Federal Reserve’s policy expectations. Gold prices were negatively affected by the calm fears of the conflict in the Middle East, as it was announced that Israel was close to reaching a ceasefire agreement with the Lebanese Hezbollah. This is in addition to some calm from the announcement of the US Treasury Secretary nominee. This announcement has led to a sharp decline in US Treasury bond yields.In addition, the US dollar is still hovering around its highest level in two years. So far, the US dollar index has risen by 5.4%. As is known, spot gold prices are sensitive to bonds and the US dollar because the former can affect the alternative cost of holding non-yielding bullion, and the latter can make gold more expensive for foreign investors to buy. Meanwhile, the US dollar gained in recent trading sessions as Trump pledged to impose an additional 10% tariff on goods from China. Also, he pledged to impose 25% tariffs on all products from Mexico and Canada, which led to their currencies falling by about 1% each. Gold Price Forecast for Tomorrow and the Coming DaysDespite the recent gold sell-off, Wall Street markets remain optimistic about gold price expectations before 2025, as market observers expect gold prices to move around $2,700 and $2,800 per ounce next year, 2025.
Gold Price Technical Analysis Today:According to the daily chart performance and today’s gold analysts’ forecasts, if the gold price returns to the vicinity of the $2600 support level. Dear reader, you should expect more bearish control over the gold trend and therefore be prepared for stronger support levels. Technically, the next will be $2585 and $2545 per ounce, respectively, which will be enough to push the technical indicators towards oversold levels. Today, the gold price will be affected by the performance of the US dollar price because of US data and upcoming Trump policies. Also, the extent to which investors are willing to take risks due to global geopolitical tensions.

Gold Signals
We still recommend buying gold from every downward level while working with a no-risk trading strategy and activating profit limit and stop loss orders to ensure the safety of the trading account from any sudden price reversals. More By This Author:GBP/USD Analysis: Struggles Near 6-Month Low Amidst UncertaintyGold Analysis: Forms A New Uptrend ChannelEUR/USD Analysis: Recovers from Selling Pressure