Gold Technology Analysis # On Wednesday (November 29th), during the European market, spot gold suddenly fell rapidly in the short term, with gold prices approaching $2035 per ounce. FXTree analyst Dhwani Mehta pointed out that gold may experience a correction correction correction before returning to an upward trend.
Mehta stated that the gold daily chart shows that the relative strength index (RSI) is in an overbought state, which serves as a warning to gold buyers but is about to form a "golden cross" in the moving average, keeping the upward trend intact.
After hawkish Federal Reserve officials made dovish remarks, the US dollar index fell to a three-month low on Tuesday, and spot gold prices surged nearly $27 on the same day.
During the session in Sanya, gold prices briefly broke through the $2050/ounce mark, reaching a peak of $2052/ounce, breaking a six-month high.
Mehta pointed out that expectations surrounding the dovish shift of the Federal Reserve will continue to support gold prices. However, the upward correction to the US third quarter gross domestic product (GDP) data and broader market sentiment may trigger a correction correction correction in gold prices, giving US dollar buyers some temporary breathing space.
At 21:30 Hong Kong time on Wednesday, the US Bureau of Economic Analysis will release the revised real gross domestic product (GDP) for the third quarter, with an expected annualized quarterly growth rate of 5.0%, compared to the previous value of 4.9%.
Analysis of the Latest Technology Prospects of Gold
Mehta said that from the daily chart, it can be seen that there is still room for further increase in gold prices. However, before a new round of upward trend begins, the possibility of a pullback in gold prices cannot be ruled out.
On the 14th, the Relative Strength Index (RSI) index entered the overbought zone, indicating the possibility of a pullback in gold prices. In this situation, the short-term support level for gold prices is seen at the mid September high of $2022 per ounce, which was an important resistance level earlier.
The next key support is expected to be yesterday's low of $2012 per ounce. If it falls below this level, the correction momentum may regain traction and test the $2000 per ounce level.
The last line of defense for gold buyers is the 21 day moving average (SMA), currently at $1983 per ounce.
However, Mehta stated that the daily chart depicts an upcoming "golden cross" as the 50 day moving average is preparing to cross the 200 day moving average from below. The potential "golden cross" should provide a buffer for the downward trend of gold prices.
On the upward side, Mehta pointed out that if the gold price breaks through a several month high of $2052 per ounce, it will drive a new upward trend and rise to the static resistance level of $2070 per ounce.
Afterwards, the historical high of $2079 per ounce will be the next target of attention for gold buyers.
