- As expected, the price of gold increased at the beginning of this week amid recent developments in the Middle East.
- According to gold trading company platforms, the price of gold has risen to the resistance level of $2,650 per ounce, starting from the support level of $2,628 per ounce in the same trading session.
Gold Price Forecasts Tomorrow
Gold prices are expected to continue rising tomorrow and in the coming days if global geopolitical tensions, especially in the Middle East and the Russia-Ukraine war, increase. This is in addition to increased global demand for gold, as China has resumed gold purchases. Recent events in the Middle East, such as the overthrow of President Bashar al-Assad by rebel forces in Syria, mark the end of the Assad family's 50-year rule and raises concerns about a new wave of instability in the region. Additionally, the Chinese central bank has resumed buying gold for its reserves after a six-month ban on purchases.
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US Monetary Policy Impact on the Gold Market
After the announcement of US jobs figures at the end of the week and then the announcement of US inflation figures later this week, expectations for the upcoming US Federal Reserve decisions will be formed. In this regard, according to the CME FedWatch tool, financial markets are now pricing in an 83% chance of a 25-basis point cut in US interest rates at the last meeting of the Federal Reserve in 2024. Consequently, this would reduce the alternative cost of holding the non-interest-paying asset, which enhances the attractiveness of gold.
US Dollar Index Stabilizes Ahead of Important Data
According to reliable trading platforms, the US Dollar Index (DXY), which measures the performance of the US dollar against a basket of other major currencies, is stabilizing at 106.02 today amid cautious anticipation from investors and financial markets for the announcement of US inflation figures, which may affect the upcoming US interest rate decision of the Federal Reserve. Prior to this important release, US economic data recorded better-than-expected figures for US jobs last month, despite the unemployment rate rising to 4.2%. US consumer confidence also improved in December, boosting positive sentiment towards the dollar.
Trading Tips:
With today's gold analysis, I still advise you to stick to the strategy of buying gold from every downward level, regardless of the US dollar price, as the factors of gold's strength are increasing and continuing
Gold Price Technical Analysis Today:
According to today's gold analysts' forecasts, the formation of an upward channel for gold prices on the daily chart will become stronger if prices move towards resistance levels of $2,665 and $2,680 per ounce, which in turn will pave the way for the bulls to reach the psychological ceiling of $2,700 per ounce again. Technically, the Relative Strength Index (RSI) indicates a neutral performance and balance between bears and bulls at present. Also, it will move upwards with the $2,700 peak. At the same time, the direction of the MACD indicator begins to shift upwards but lacks upward momentum. You can consider buying gold from support levels of $2,638, $2,620, and $2585 per ounce, respectively. At the same time, it is necessary to avoid risk and activate take-profit and stop-loss orders to ensure the safety of the trading account from any sudden price reversals.
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