Gold Price Analysis: Key Levels to Watch as Bearish Momentum Persists Below $2,685

#Gold prices were little changed on Monday, as market participants await comments from @federalreserve officials & econ data to gauge US interest rate path. US gold futures eased below $2,680/oz. Slew of Fed officials are scheduled to speak this week, including Chair Powell.

— Neha Anand (@Neha_1007) November 11, 2024

This bearish outlook is reinforced by the 50-period Exponential Moving Average (EMA) hovering near $2,698.358. The metal’s ability to close above these resistance levels will be crucial in determining if a short-term recovery is on the horizon. However, failing to surpass $2,685 could intensify selling pressure, potentially pushing prices down to the $2,648.681 support level.

• Current Price: $2,670.34

• Key Resistance Levels: $2,685 and $2,698.358

• Key Support Levels: $2,648.681, $2,624.863

Technical Indicators Signal Further Downside Risk

The Relative Strength Index (RSI) stands at 36.39, indicating oversold conditions and reflecting weak buying interest. While the RSI in oversold territory often hints at a possible reversal, the absence of bullish momentum underscores persistent caution. The 50 EMA is trending downwards, acting as a dynamic resistance and reinforcing the bearish stance. Until gold prices decisively break above the $2,685 threshold, downside risks are likely to prevail.

The overall sentiment remains bearish, driven by both technical factors and macroeconomic influences. With high U.S. Treasury yields making gold less attractive due to its non-yielding nature, investor sentiment favors riskier assets, compounding pressure on gold prices.

I found a sleeve of 40 x $2.5 US Gold Indians last week. Went to Red Lobster with the wife to celebrate🤷🏻‍♂️😎

— NumisBit🇺🇸🇮🇪 (@Btully41Tully) November 11, 2024

Key Levels and Market Outlook

For traders, the immediate support and resistance levels offer crucial insights into potential price movements. The following levels highlight the market’s current positioning:

• Pivot Point (Green Line): $2,686.215

• Immediate Resistance: $2,685

• Next Resistance: $2,698.358

• Immediate Support: $2,648.681

• Next Support: $2,624.863

A breakdown below the immediate support of $2,648.681 may pave the way for a deeper decline towards $2,624.863, while a breach above the resistance at $2,698.358 could shift momentum in favor of the bulls.

Summary of Key Insights

• Bearish Momentum Persists: Gold remains under selling pressure amid a strong U.S. Dollar and higher Treasury yields.

• Technical Resistance at $2,685 and $2,698.358: These levels are critical for any potential upside movement.

• Key Support at $2,648.681: A drop below this level may trigger further declines, with the next support at $2,624.863.

Conclusion:
Gold prices are likely to stay under pressure unless there is a decisive break above $2,685. Given the current technical setup and market sentiment, traders may look for sell opportunities on any short-term rallies, particularly if resistance levels remain intact.