Gold news analysis: On Friday (December 29) in the US market, spot gold prices traded near 2062 US dollars/ounce, boosted by the weakness of the US dollar, spot gold rose for the third consecutive week this week, up 0.5% on the weekly line. During the week, spot gold peaked at $2,088.43 an ounce. Market analysts said: the main trend of gold is still positive, and in the medium to long term, the price of gold is likely to hit $2,100 again. For now, expectations of rate cuts have driven the rally in precious metals, including gold, with the market pricing in a Fed rate cut in March and a total of 150 basis points in 2024. Weaker Treasury yields and the dollar, as well as concerns about an economic slowdown, will continue to boost gold prices. According to the CME FedWatch tool, investors are betting on an 88 percent chance that the Fed will cut rates in March.
This week will be Gold Super Week, with the once-a-month NFP data. Following the surprisingly strong performance in 2023, we expect further gold price gains in 2024, driven by three major drivers: momentum chasing hedge funds, continued steady purchases of physical gold by central banks, and a renewed influx of exchange-traded fund (ETF) investors. Going into the New Year, the theme of global central banks seems to be that lower interest rates are coming, so there is still a lot of upside for gold. Taken together, a weaker dollar helps support gold. Gold surged as the dollar and lower yields paved the way for the precious metal to close the year near its 52-week high. In addition to the above reasons, there is another factor in the market, which is the widening conflict between Israel and Gaza. These factors are expected to continue to push prices higher in the New Year. Investors expect gold prices to hit a record high next year, as the market is widely expected to be supported by a dovish turn in Federal Reserve policy, persistent geopolitical risks, and central bank purchases of gold.
Technical analysis of gold: Gold last Friday December line closed, the monthly line received a dayang cross star, the top of the monthly line formed a bearish piercing K-line form, the monthly line shows that there is adjustment demand, but also close to a monthly non-agricultural data, from the previous two non-agricultural expectations are falling state, non-agricultural arrival there are a few trading days, gold into the adjustment of the cycle probability is large, The technical fundamentals are synchronized to the formation of a suppression of gold bulls, that is, in the next few trading days, gold will continue to adjust the trend will continue to fall. From the gold weekly line point of view, the weekly high volatility, basically has determined that will break the 1972 to 2088 uptrend line, the weekly line is also short running, the current weekly line as a whole to maintain in the 2050 to 2090 range of volatility, but it should be noted that this week's gold high consolidation belt top blocked correction, downward test 2052 to 2088 uptrend line.
From the daily chart, the daily line continues to close negative, from the simple K line point of view, the falling strength is slowing down, like this strong fall, once the falling strength is slowing down, we have to be particularly careful, because the early profit is too rich, while the profit time is short, we have to beware of the early profit plate escape, leading to the retaliatory rebound trend of gold, the operation should be careful, This week, the overall operation or continue to maintain a large range of 2030 to 2090 shock bearish trend. At the same time, gold has also fallen below the 5-day moving average system line, from the indicator point of view, the KDJ indicator three lines have signs of adhesion down, the MACD indicator high gold fork running, but the red pillar potential energy weakened, the daily line will also be short.
From the 4-hour chart of gold, since the fall of 2088, the short trend running in the down channel, based on the Bolin rail, if the attack on the Bolin rail is blocked again, it will continue to go down. From the indicator point of view, the KDJ index is running down in the middle, the MACD index is running down in the high dead fork, and the green pillar potential energy is increasing, indicating that the short power of gold is strengthening. The operation is still to keep the idea of rebound short unchanged, at the beginning of this week, the above attention 2070-2080 resistance, below attention 2050-2040 support. On the whole, gold Tuesday's opening short-term operation ideas suggest that the rebound is mainly short, the callback is supplemented by more, the short-term focus on 2074-2079 resistance, and the short-term focus on 2050-2045 support.
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