Gold Prices Fall Due to a Stronger Dollar and Profit-Taking
2024.12.02 16:15
prices fell on Monday due to a stronger Dollar and profit-taking, while investors await key US economic data like the US services PMI and the job report, to gauge the federal reserve’s next steps on monetary policy.
The strengthened, leading to gold price decline while markets anticipate a 65% chance of a 25-basis-points rate cut in December according to the CME group’s FedWatch tool. In addition, despite November’s 3% decline—its worst since September 2023—geopolitical tensions, including Russian-Syrian airstrikes, may limit further losses as gold remains a safe-haven asset.
On the other hand however, central banks, especially from emerging economies, are increasing their Gold reserves, signaling trust in the metal’s value and strength.
From a technical point of view, the price has found sufficient support around $2,600 which was a combination of the 100-day moving average and the 23.6% of the daily Fibonacci retracement level. Currently, it is testing the support area of the 38.2% of the daily Fibonacci retracement level while the Stochastic oscillator is back in neutral levels hinting that the price has the potential to move in either direction in the near short term.
On the other hand the 50-day moving average is trading above the 100-day showing that the overall bullish trend has yet to be reversed despite the massive bearish correction in the second half of November.
