Investing.com - Financial Markets Worldwide
50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Gold – Narrow Path to Rebound Appears Less and Less Likely

BySatendra Singh
Published 11/12/2024, 03:08 PM
XAU/USD
-
GC
-

Since my latest article, gold futures have come down sharply with the Fed’s rate cut and Donald Trump’s come back.

There is no doubt that the growing expectation over Trump’s protectionist stance towards trade and immigration could result in higher inflation. The announcement of consumer price index data this week is also expected to show inflation remaining sticky in October.

On the other hand, the US dollar index has raced to a four-month high this week, which is inflationary. Amid such a scenario, technical indicators look quite supportive of a long-term bearish trend in gold prices.

In the daily chart, the 9 DMA has tilted downward and has formed a bearish crossover by crossing below the 18 DMA while the gold futures are currently trading below this bearish formation.

Secondly, the gold futures have broken the lower trend line of the uptrend channel, confirming a step-down could lead to a steep fall in gold prices.

Thirdly, gold futures continue to fall 60 degrees from the peak, which is likely to continue after one more down step by the gold futures, which could lead this fall to test the next support at $2551.

Finally, I conclude that the gold futures have already broken the significant support at $2683, which has now turned into a major resistance for the gold futures.

Undoubtedly any bounce in the short term could provide an opportunity to short the gold December futures.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.