Investors brace for impact as Dollar strength and profit-taking cause prices to fall on Monday. All eyes are on upcoming US economic data, including the US services PMI and job report, to determine the federal reserve’s next moves on monetary policy.
The Dollar’s surge leads to a drop in gold prices, with markets predicting a 65% chance of a 25-basis-points rate cut in December. Despite a 3% decline in November, geopolitical tensions, such as Russian-Syrian airstrikes, may provide support for gold as a safe-haven asset.
Meanwhile, central banks, particularly from emerging economies, continue to boost their gold reserves, demonstrating confidence in the metal’s enduring value.
Technically speaking, the price has found solid support around $2,600, marked by the 100-day moving average and the 23.6% daily Fibonacci retracement level. Currently, it is testing the 38.2% daily Fibonacci retracement level for support, with the Stochastic oscillator hovering in neutral territory, indicating the potential for price movement in either direction.
Furthermore, the 50-day moving average remains above the 100-day, signaling a persistent bullish trend despite a significant bearish correction in late November.
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=[];t=b.createElement(e);t.async=!0;t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)}(window, document,’script’,’