On Monday (November 27th) in the European market, spot gold maintained a strong intraday trend, with gold prices currently trading around $2015 per ounce, rising more than $12 during the day.
FXStreet analyst Dhwani Mehta wrote on Monday that gold prices dominated above $2000 per ounce, and in early Asian trading on Monday, gold prices hit a six month high of $2018 per ounce.
Spot gold closed last Friday up $9.88, or 0.49%, at $2002.48 per ounce. Last week, spot gold prices surged by $21.83, or 1.1%.
Mehta said that gold prices closed above $2000 per ounce last week and are expected to rise further before the release of key inflation data in Europe and America this week. Gold prices are still expected to surpass $2020 per ounce.
On Thursday, investors will welcome the Federal Reserve's preferred inflation indicator - the Core Personal Consumption Expenditure (PCE) Price Index.
Mehta pointed out that US PCE inflation data will help strengthen bets on the Federal Reserve's interest rate cut in May next year, while Eurozone inflation data will provide new insights into the European Central Bank's interest rate outlook. Both of these data may have a significant impact on the price of gold.
In terms of economic data, Mehta stated that on this trading day, US new home sales data will provide new transaction incentives.
At 23:00 Hong Kong time on Monday, new home sales in the United States for October will be announced, with an expected annualized monthly rate of 4.8% decrease, compared to a 12.3% increase in September.
Analysis of the Latest Technology Prospects of Gold
Mehta pointed out that as the new week begins, the bullish technical aspects on the daily chart keep the upward risk of gold prices intact.
On the 14th, the Relative Strength Index (RSI) pointed upwards above the midline, approaching the overbought area, indicating that more upward momentum is imminent.
Gold prices closed above the $2000/ounce mark last Friday, strengthening bullish sentiment. The short-term resistance level of gold prices is at the high point in mid May (around 2020 USD/oz).
Mehta said that if the gold price breaks through short-term resistance of $2020 per ounce, it will open the door for testing static resistance of $2050 per ounce.
On the other hand, Mehta pointed out that the short-term support level for gold prices is seen at $2000 per ounce. If it falls below this level, it cannot be ruled out that gold prices may fall significantly towards the 21 day moving average of $1978 per ounce. The next support is in the 1955-1950 USD/oz range.
If the gold price continues to fall below the above area, the low point of $1944 per ounce on November 14th may be put to the test.
