Big news!Gold prices surged nearly $10 in the short term. FXStreet analysts analyze the technical outlook for gold.
FX168 Global Investment
2023-11-20 11:14:00
On Monday (November 20) in the Asian market, spot gold suddenly rose rapidly in the short term. The price of gold just broke through the US$1,980/ounce mark, and the short-term increase reached nearly US$10.
(Spot gold 15-minute chart source: 24K99)
FXStreet analyst Eren Sengezer pointed out that from a technical perspective, gold prices may test $2,000 per ounce in the near future.
Sengezer said gold gained bullish momentum last week, rising more than 2.5%, as the dollar fell along with U.S. Treasury yields. This week’s economic report will not feature any major macroeconomic events, and investors can focus on gold’s technical aspects for trading opportunities.
The Federal Reserve will release the minutes of its policy meeting from October 31 to November 1 on Tuesday. According to CME Group’s “Fed Watch” tool, the market has almost completely priced in the Fed’s decision to keep interest rates unchanged in December, and the market expects the policy rate to remain at 5.25%-5.5% by June next year. Less than 15%.
On Wednesday, the United States will release durable goods orders for October and weekly initial jobless claims. The market reaction to these data is likely to be immediate, with worse-than-expected data weighing on the dollar, while stronger data supporting the dollar.
U.S. stock and bond markets will be closed Thursday for the Thanksgiving holiday. On Friday, both markets will be open for a half-day.
Sengezer pointed out that S&P Global will release preliminary U.S. manufacturing and services PMI values for November on Friday, but market behavior is likely to remain subdued amid thin trading. Investors can pay close attention to gold’s technological developments to look for new opportunities.
Gold technical prospect analysis
Sengezer said gold’s daily chart shows the relative strength index (RSI) climbing to 60, indicating that bullish momentum in the near-term outlook for gold prices is building.
Sengezer said that on the upside, the psychological level of $2,000 per ounce poses short-term resistance to gold prices, with subsequent resistance at $2,010 per ounce and $2,040 per ounce.
(Spot gold daily chart source: FXStreet)
On the downside, Sengezer noted that the 20-day simple moving average (SMA) forms dynamic support near $1,975/oz, followed by $1,960/oz (the 38.2% Fibonacci retracement of the latest uptrend).
A daily close below $1,960/oz would likely attract sellers and open the door for gold to continue its decline towards the $1,940-$1,930/oz area, where the 200-day, 100-day and 50-day moving averages converge. .
At 09:28 Hong Kong time, spot gold was trading at $1,982.98 per ounce.
Warning from the financial community: The content, data and tools in this article do not constitute any investment advice and are for reference only and do not have any guiding role. The stock market is risky, so be cautious when investing!
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