Gold succeeds in establishing support 21/11/2023

Gold prices have achieved positive stability above the main support floor mentioned in the previous technical report, positioned at the price of 1977. This led to a notable upward rebound, reaching the initial target of 1990 and recording its highest level at $1993 per ounce during the morning trading of today’s session.

Analyzing the technical aspects on the 240-minute timeframe chart, it is observed that the price continues to receive a positive stimulus from the simple moving averages, supporting the continuity of the upward daily trend. This is complemented by clear positive signals on the 14-day momentum indicator.

With trading remaining stable above the pivotal support floor of 1977, representing the 38.20% Fibonacci retracement, the positive expectations are upheld. Surpassing 1998 would extend the gains, with the next target set at 2004, and potential gains may further extend towards 2014/2017.

Conversely, the failure of gold prices to consolidate above the critical support level of 1977, and particularly 1971, would subject the price to substantial negative pressure, leading to a session in negative territory with initial targets starting at 1965.

A note of caution: Today, high-impact economic data is expected from the American economy, specifically the results of the Federal Reserve Committee meeting and the press talk of the President of the European Central Bank. Additionally, the release of the consumer price index from Canada may lead to high price volatility. The overall risk level is elevated due to continuing geopolitical tensions. Investors should exercise caution and remain vigilant in response to these events.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1982.00	R1: 1998.00
S2: 1971.00	R2: 2004.00
S3: 1965.00	R3:  2014.00