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Gold Strengthens: Bulls Set Sights on Bigger Moves

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Aayush Jindal

Key Highlights

  • Gold started a fresh upward move above the $2,675 resistance.
  • A key bullish trend line is forming with support at $2,690 on the 4-hour chart.
  • Oil prices corrected some gains and traded below $78.80.
  • EUR/USD was able to recover above the 1.0300 resistance zone.

Gold Price Technical Analysis

Gold prices remained well-bid near the $2,620 zone against the US Dollar. The price formed a base and started a fresh increase above $2,650 and $2,675.

The 4-hour chart of XAU/USD indicates that the price even climbed above $2,688 to move into a positive zone. The price surpassed the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours).

It traded toward $2,725 before there was a short-term downside correction. The price dipped below the $2,720 and $2,710 levels. On the downside, initial support is near the $2,690 level.

There is also a key bullish trend line forming with support at $2,690 on the same chart. The first key support is near $2,672. The next major support is near the $2,665 level.

The main support is now $2,655. A downside break below the $2,655 support might call for more downsides. The next major support is near the $2,620 level.

On the upside, immediate resistance is near the $2,725 level. The next major resistance sits near the $2,740 level. A clear move above the $2,740 resistance could open the doors for more upsides. The next major resistance could be $2,750, above which the price could rally toward the $2,765 level.

Looking at Oil, there was a minor rejection near the $80.00 zone and the price corrected below the $78.80 level.

Economic Releases to Watch Today

  • UK Claimant Count Change for Dec 2024 – Forecast 10.3K, versus 0.3K previous.
  • UK ILO Unemployment Rate for Nov 2024 (3M) – Forecast 4.3%, versus 4.3% previous.
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