Is Gold A Good Buy Trade As It Heads to $2,600 on Bullish US?
Gold has been falling fast in the last two weeks after placing a record high at $2,790, but this might be a good opportunity to buy Gold.
Gold has been retreating fast in the last two weeks, after placing a record high at $2,790 but this might be a good opportunity to look for a place to buy XAU. After all, fundamentals and the larger trend is still pretty bullish, with predictions for the uptrend to stretch further, so pullbacks lower should present some good buying trades in Gold and Silver.
Gold has been surging in the last two years, raising almost 50% from the lows at $1,600 in November 2022. The upside momentum picked up further pace in 2024, with the Gold price reaching new highs pretty often. However, after forming a doji candlestick on the weekly chart, which is a bearish reversing signal after the uptrend, Gold turned lower and has been tumbling in the last two weeks, giving back around $180 of gains so far.
Gold Chart Daily – The 50 SMA Has Been Broken
Gold Under Pressure Amid Stronger Dollar and Yield Gains
Since the recent U.S. election, gold has faced renewed pressure, declining another 2.7% today as the dollar strengthens and bond yields rise. This downtrend may also reflect a shift in investment flows toward Trump-backed assets like equities and Bitcoin. While gold and Bitcoin had rallied together through much of 2024, they have diverged sharply since the election: gold has fallen $75 to a session low of $2,612, while Bitcoin surged over the weekend to a record high of $82,500.
Price Momentum and Key Support Levels
Gold’s brief rally last Thursday following the election was unable to hold above $2,700, marking a continued bearish shift. A significant technical move has been gold’s drop below both the 20-day and 50-day simple moving averages (SMAs), which had been strong support zones. This has given sellers the upper hand for now. Despite its remarkable performance this year, gold may find a tailwind in the coming months as December and January have traditionally been strong, with seasonal demand often heightened by geopolitical and economic concerns.
Gold Chart Weekly – The 20 SMA Awaits Lower for Support
If gold breaks below the October low of around $2,600, the next significant support is around the 20-week SMA at $2,580. A move to this level could approach oversold territory, potentially attracting interest from dip buyers. Investors may see any pullback as a setup for a seasonal rally.
Market Sentiment and Treasury Secretary Appointment
Trump’s choice for Treasury Secretary could further impact gold sentiment. If John Paulson, a well-known gold advocate, is selected, it could shift the outlook positively for precious metals, adding an additional factor for market watchers in the coming months.
Gold Live Chart
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
- Read our latest reviews on: Avatrade, Exness, HFM and XM
Related Articles
Sidebar rates
Related Posts
Save