Gold Bulls Retreat: More Declines in the Offing?
2023.12.11 09:41
Gold quotes on the global commodity exchange have decreased to 2000.00 USD per troy ounce.
This month, the precious metal reached a new all-time high but failed to advance.
Two factors can explain the local decline in gold prices. The first is the consistent growth of the USD exchange rate. These assets have an inverse correlation. The second reason is a noticeable decline in global demand for safe-haven assets. Market participants hardly consider geopolitical factors, being content with the financial ones.
Investors are currently almost uninterested in gold as an instrument for hedging risks.
technical analysis
On the XAU/USD H4 chart, a decline wave to 2025.25 has been executed. A consolidation range has formed around this level by now. The potential for a decline wave to 1905.00 might open with an escape from it downwards. This is the first target. After reaching it, the price might start correcting to 2025.25 (a test from below). Next, another decline wave to 1850.00 could begin. Technically, this scenario is confirmed by the MACD, whose signal line is under zero, pointing strictly downwards.
On the XAU/USD H1 chart, the quotes have rebounded downwards from 2039.99. Today, the market continues forming a decline wave to 1972.82. Next, it could correct to 2007.77 (with a test from below) and drop to 1905.00. Technically, this scenario is confirmed by the Stochastic oscillator: its signal line is under 50, pointing strictly downward to 20.
By RoboForex Analytical Department
Disclaimer
Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
