At the end of the Asian market on Thursday (December 7th), spot gold remained largely stable, with gold prices currently reporting around $2026 per ounce. FXTree analyst Mat í as Salord's latest article analyzes the prospects of gold technology.
Salord pointed out that on Wednesday, gold prices rose after staying above $2010 per ounce. Despite the decline in US Treasury yields, the strengthening of the US dollar limits the upward space for gold prices.
Spot gold closed up 0.3% on Wednesday at $2025.30 per ounce, with a intraday low close to $2020 per ounce.
According to Salord, once the gold price falls below $2020 per ounce, there is a risk of a significant pullback for gold.
Salt said that gold prices need to rise above $2045 per ounce to improve short-term prospects.
On Wednesday, the November ADP employment in the United States recorded 103000 people, falling short of expectations for the fourth consecutive month. Salord said that the United States will release more employment data next, including weekly initial jobless claims on Thursday and key non farm payroll reports on Friday. Although these data are expected to further weaken, their impact on the US dollar has been limited so far and has not significantly changed the positive momentum. Even the yield of 10-year US treasury bond bonds fell to the lowest level of 4.12% since the beginning of September last year, which failed to boost gold prices.
Short term technical prospects for gold
Salord said that on Wednesday, gold prices managed to achieve an increase after a significant decline earlier. After successfully holding onto the 2010 USD/oz range, gold prices began to rebound. Currently, gold prices fluctuate between $2035/ounce and $2020/ounce. The bearish trend continues, but signs of stabilization have begun to emerge.
Salord added that on the 4-hour chart, technical indicators tend to decline but lack strong belief. Gold prices remain below the 20 cycle simple moving average (SMA) of $2043 per ounce. The risk of gold price trend seems to be inclined towards a downward trend. Once it falls below $2020/ounce, the gold price will drop to $2010/ounce, and may even target the $2000/ounce area.
From an upward perspective, if the gold price rebounds above $2050 per ounce, the short-term trend will shift towards neutral or positive.
Salord provides the latest key support and resistance levels for gold prices:
Support level: 2020 USD/oz; 2010 USD/oz; 1990 USD/oz
Resistance level: $2031/ounce; $2045 per ounce; $2072 per ounce
At 13:50 Beijing time, spot gold was reported at $2026.63 per ounce.
