Gold Steady Over $1,785 – A Breakout of Key Hurdle to Drive Uptrend - Forex News by FX Leaders
Gold - XAU/USD Chart

Gold Steady Over $1,785 – A Breakout of Key Hurdle to Drive Uptrend

Posted Wednesday, December 8, 2021 by
Arslan Butt • 2 min read
 [[Gold]] prices were closed at $1784.70 after placing a high of $1789.30 and a low of $1772.40. Gold reversed its course on Tuesday and surged to recover some of its previous daily loss despite the strength of the US dollar. It inched higher on Tuesday as the attention of investors shifted towards the upcoming inflation data this week, which is expected to influence the pace at which the Federal Reserve will increase the interest rates. The US central bank is holding its last policy meeting for this year next week, and investors were awaiting more clarity on interest rates when the Omicron variant has raised uncertainty in the market.

 

XAU/USD
Furthermore, the rising uncertainty related to potential geopolitical tensions between the US and Russia supported the safe-haven. The markets were closely watching the Biden-Russia phone call as US President Joe Biden has warned Russian President Vladimir Putin that the West was concerned Russia could invade Ukraine, which would prompt economic and other measures from the US over Russia. These geopolitical uncertainties also gave further push to gold prices on Tuesday.

However, the gains remained subdued after the top US infectious disease official, Anthony Fauci, eased concerns related to the Omicron variant as he said that it did not look like there was a great degree of severity.

On the data front, at 18:30 GMT, the Revised Nonfarm Productivity fell to-5.2% against the projected -4.9% and supported the US dollar. The Revised Unit Labor Cost increased to 9.6% against the expected 8.3% and supported the US dollar. The Trade Balance remained flat at -67.1B. At 20:00 GMT, the IBD/TIPP Economic Optimism improved to 48.4 against the projected 45.8 and supported the US dollar. Most of the data released on Tuesday came in favor of the US dollar that kept the gains in gold prices limited for the day.The strength of the US dollar and the US Treasury Yields also capped further gains in the precious metal as the DXY reached 96.59 level after rising continuously for the five consecutive days, and the US Treasury Yields on the benchmark 10-year note also increased for the second day to reach 1.48%. Currently, the market participants are closely watching the inflation figures released next week.

Gold – A Technical Outlook; Quick Signal Update

Due to a shortage of high-impact events, the technical outlook for gold remained unchanged on Wednesday. On an hourly basis, gold has violated a symmetrical triangle pattern, which provided resistance at the 1,785 level. Now the same level is working as a support for [[gold]] .

Gold - XAU/USD Chart

Daily Technical levels

Support Resistance
1774.96 1791.86
1765.23 1799.03
1758.06 1808.76
Pivot Point: 1782.13
The key resistance level remains at 1,792 while the RSI is in a buy zone. As a result, a breach of the support mark at 1,785 would open GOLD to support levels at 1,773 or 1,768. On the positive side, a violation of pivot point resistance at around 1,782 would open the metal price to levels of 1,797 or 1,808. Good luck!
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