The global markets are buzzing with activity as we approach the Christmas holidays. Despite expectations of lower liquidity, the recent Central Bank decisions are still influencing the markets.
Gold prices have taken a hit as the US Dollar continues to climb, fueled by positive economic outlooks and the avoidance of a government shutdown. With limited high-impact data releases this week, Gold may remain rangebound.
US Dollar Index Surges
The US Dollar is on a winning streak following the Fed’s new policy outlook for 2025. Despite some poor US data, the Greenback remains strong. Analysts predict a further rise in the US Dollar next year, which could keep Gold under pressure.
What to Expect This Week
This week is filled with mid and low-tier data releases, adding to the market volatility. Geopolitical risks in Syria and the Russia-Ukraine conflict continue to pose threats to Gold’s safe-haven status.
Technical Analysis of Gold (XAU/USD)
On a four-hour timeframe, Gold shows a bullish structure with potential for further upside. A close below the 2600 handle could invalidate this pattern, but a break above 2624.86 may lead to new highs.
Key Levels to Watch
The “Golden Ratio” level is crucial for Gold’s next move. A hold at this level could signal a bullish continuation, with resistance at 2639 and 2650. Immediate support lies at 2600.
Overall, keep an eye on the US Dollar’s strength, geopolitical developments, and technical patterns in Gold for potential trading opportunities. Understanding these factors can help you make informed decisions about your investments and financial future.