- Gold prices experienced selling pressure at the beginning of the US jobs week, declining to $2,622 per ounce from the resistance level of $2,652 per ounce in the same trading session, and stabilizing around $2,638 per ounce at the beginning of trading on Tuesday.
- I expect the price of gold to continue its upward path despite the gains of the US dollar from Trump's trade.
- Since the beginning of 2024, the gold price index has risen by about 30%; It has reached historical record levels in recent months.
US Dollar Gains Affect the Gold Market
According to reliable trading platforms, the US dollar has returned to rise after recording a 1.6% decline during last week's trading, its first weekly decline in nine weeks. As is well known, the strength of the US dollar negatively affects the performance of gold markets. The US dollar's gains came ahead of the announcement of a package of important US economic releases led by the announcement of US jobs figures, which in turn will affect the future of US Federal Reserve policies in the coming months. So far, the US dollar has been stronger due to Trump's trade and his threat to impose heavy tariffs on global economies, and recently BRICS countries were the latest threat with a 100% tariff.
US Treasury Yields Continue to Rise
In the same vein as the strength of the US dollar, the yield on 10-year US Treasury bonds rose to 4.23% at the beginning of this week, rebounding after a two-week decline that saw a decline of about 27 basis points. The gains in yields came ahead of the announcement of a package of important US economic releases and statements by several US Federal Reserve officials. Currently, financial markets estimate a 62% probability of a 25-basis point cut in US interest rates by the Federal Reserve this month, up from 53% a week ago.
US Stock Indices Reach New Record Levels
According to stock trading platforms, in the first trading session of December, the S&P 500 and Nasdaq 100 US stock indices closed at record highs, rising by 0.2% and 1.1%, respectively, with most of the gains coming from large-cap technology stocks, while the Dow Jones index declined by 128 points. Leading sectors included communication services, discretionary consumer goods, and technology, while real estate stocks declined. According to trades, Tesla shares rose 3.4% after unveiling an update to its "full self-driving" program, and Super Micro Computer shares rose 28.7% after its financial reports were verified, and Amazon shares rose 1.4% amid strong momentum.
Over the past month, the S&P 500 and Dow Jones indices have risen 5.7% and 7.5%, respectively, driven by the post-US election rally. However, weak trading volumes, the inverted yield curve, and the upcoming US jobs report will be closely monitored to predict the future of US Federal Reserve policies.
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Gold Price Technical Analysis Today:
Despite the recent halt in gains, the overall trend of the gold price remains upward for now. According to today's gold analysts, the gold price remains above the 50-day and 100-day exponential moving averages (EMA). The most prominent resistance levels for the current performance will be $2675 and $2700 per ounce, respectively, and from the last level, technical indicators will begin to move towards strong overbought levels. The factors driving the upward gold trend are present and may continue regardless of the US dollar price in the coming months. According to the daily chart, the closest support levels for gold prices will currently be $2618, $2600, and $2575 per ounce.
Today's gold Signals:
There is no change in my signals regarding gold trading and we still prefer to buy gold from every downward level. Furthermore, by taking into consideration the principle of not risking and activating profit limit and stop loss orders to ensure the safety of the trading account from any sudden price reversals.
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