Gold shows continued recovery trend

Commodity

Summary:

On December 10, 2024, the price of gold (XAU/USD) was trading around $2,655/oz, with a recovery trend after a recent correction. The move was supported by concerns about global economic risks and expectations of dovish monetary policy from the US Federal Reserve (Fed)....

BUY XAUUSD

Close Time

CLOSED

2657.00

Entry Price

2665.00

2640.00

4433.41 +101.04 +2.33%

80.0

Pips

Profit

2640.00

2665.02

Exit Price

2657.00

Entry Price

2665.00

Gold prices continue to receive support from a stable interest rate environment as the Fed just signaled to keep interest rates unchanged at its policy meeting last week. With US economic data showing the producer price index (PPI) in November falling 0.1%, inflationary pressures appear to have eased, making the possibility of further interest rate hikes less likely.

In addition, the market is reflecting the impact of geopolitical tensions in the Middle East, increasing the demand for safe haven gold. Gold ETFs also recorded a sharp increase in inflows, reaching 12 tons last week, a sign that confidence in this safe asset is increasing.

Market psychology

Current market sentiment is bullish for gold as investors seek safe havens from economic turmoil. A report from the World Gold Council showed that physical gold demand from China and India rose 4% in November from the previous month, supported by the festive season and expectations of price stability.

However, demand from the US market has shown signs of slowing down as the USD maintains its strength. The DXY index is currently fluctuating at 104.3, putting some pressure on gold prices.

Technical analysis

On the H1 chart, gold price has broken above the 20-period moving average, creating a solid bullish base. The Bollinger Bands are expanding, indicating increased volatility. The current price is above a strong support zone at $2645, with the nearest resistance at $2665.

The CCI (14) indicator has just entered the overbought zone (104.26), suggesting a slight correction in the short term. However, the bullish momentum is still maintained as other technical signals such as the uptrend on the MACD are still clear.

Trading strategy

Entry: $2655

Take Profit: $2665

Stop Loss: $2640

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