Gold is rising on the shoulders of USD 14/12/2023

Gold prices saw an uptick against the US dollar following the Federal Reserve’s decision to stabilize interest rates, indicating a downward trend. In the previous technical report, we highlighted that a move upwards and consolidation above 2003 would halt the bearish trend. Now, we anticipate gold to target 2019 and 2021 initially, with the potential to reach its highest price at $2039 per ounce.

Examining the technical analysis on the 4-hour timeframe chart today, the price is momentarily stable above the 2019 level, a 38.20% Fibonacci retracement point where the 50-day simple moving average intersects. Additionally, the relative strength index is signaling positive momentum.

With intraday trading holding above 2019, there is a possibility of further upward movement that commenced during the previous session. However, a clear and robust breach of the 2040 resistance level is crucial for sustaining the daily upward trend. This breakthrough would open the path towards the first target at 2055, with potential gains extending to 2068.

Conversely, a close below 2019, confirmed by at least an hour candle, could exert negative pressure on gold. This might lead to a retest of 2000 and 1990 initially.

Cautionary Note: The risk level is high. Today, high-impact economic data is expected from the British economy, including the Monetary Policy Summary, Interest Rate Decision, and Monetary Policy Committee vote on interest rates. Additionally, Eurozone economic data includes Interest Rate Decision, ECB Monetary Policy Statement, and ECB President’s press conference. From the United States, focus is on US retail sales.

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: 1990.00	R1: 2055.00
S2: 1948.00	R2: 2080.00
S3: 1923.00	R3:  2121.00