Gold maintains gains and eyes on inflation data 12/1/2023

We adhered to intraday neutrality during the previous decision due to a conflict between the technical signals. However, we made it clear that breaching the 1880 resistance level could consolidate gold gains to visit our first target for the previous report at 1887, so that gold prices recorded their highest level of 1887, forcing gold once again to retest the main support at 1865.

Technically, there is a typical retest of the strong support floor at 1865, from which the price of gold bounced again, maintaining its positive stability above it, and now hovering around 1883; with a closer look at the 4-hour chart, we find that the simple moving averages are still holding the price from below, accompanied by positive signs.

From here, and with the continued stability of intraday trading above 1871, and in general, above 1865, the bullish trend is the most likely, taking into consideration that the price’s consolidation above 1888 increases and accelerates the strength of the bullish trend, opening the door to 1891 and 1899. Initial targets may extend later towards the official target of the current bullish wave at 1910.

If gold fails to maintain trading above the 1865 level, we may witness the beginning of a downward correction of its initial target of 1845 and later extending towards 1835.

Note: Today, markets are awaiting US inflation (consumer price index) data, which may lead to price volatility.

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: 1871.00	R1: 1891.00
S2: 1859.00	R2: 1899.00
S3: 1851.00	R3:  1911.00