Key Highlights
- Gold prices started a fresh decline from the $2,088 resistance.
- A key bearish trend line is forming with resistance near $2,050 on the 4-hour chart.
- Crude oil prices are also struggling to rise above the $74.00 resistance.
- EUR/USD managed to stay above the 1.0880 support zone.
Gold Price Technical Analysis
Gold gained pace above the $2,050 resistance against the US Dollar. It even broke $2,065 before the bears appeared near the $2,088 zone.
The 4-hour chart of XAU/USD indicates that the price formed a short-term top and started a fresh decline from $2,088. There was a move below the $2,065 support zone, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
There was a clear move below the 50% Fib retracement level of the upward move from the $1,972 swing low to the $2,088 high. Initial support is near the $2,010 level.
The first major support sits near the 76.4% Fib retracement level of the upward move from the $1,972 swing low to the $2,088 high at $2,000. Any more losses might call for a move toward the $1,975 level in the coming days.
On the upside, the price might face resistance near $2,050. There is also a key bearish trend line forming with resistance near $2,050 on the same chart.
An upside break above the $2,050 level could send the price soaring toward the $2,065 resistance. The next major resistance is near the $2,088 level, above which Gold could test $2,120.
Looking at crude oil, the bears seem to be active near the $74.00 zone and there could be a fresh bearish reaction to $68.00.
Economic Releases to Watch Today
- US Goods and Services Trade Balance for Nov 2023 – Forecast $-65.0B, versus $-64.3B previous.
