Gold Analysis: Continued Upward Trend Possible – 17 December 2024

-- Gold prices started the week relatively stable, trading between $2,644 and $2,664 per ounce.
-- Today (Tuesday), the price is expected to open around $2,651 per ounce on.
-- According to gold trading platforms, the gold price index remains relatively firm due to expectations that the US Federal Reserve may pause further interest rate cuts in 2025 due to the resilience of the US economy.

Will the price of gold rise in the coming days?

According to gold analysts, the future of the US Federal Reserve's policy weakens the appetite for gold bullion. Despite this, spot gold prices have recorded gains of over 30% in 2024 amid record-breaking buying of the metal as a safe haven amid global geopolitical tensions led by the Russian Ukrainian war and Israeli wars in the Middle East. This is in addition to the easing monetary policy of major central banks. Recently, the European Central Bank, the Bank of Canada, and the Swiss National Bank cut interest rates, and the Bank of Japan hinted at a cut instead of a hike. The People's Bank of China is also expected to ease its monetary policy next year and return to gold buying after a six-month hiatus. ; ;

Trading Tips:

The current stability of gold prices portends a strong move in one direction or another, so be careful

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Will gold prices return to $2,000 again?

In this regard, Peter Schiff, chief markets analyst at Euro Pacific Asset Management, said that gold prices will not fall below $2,000 per ounce again in our lifetime after the metal's performance this year. Recently, this price has become a thing of the past and the direction of gold prices will remain upward. The analyst commented on US hints of replacing gold with Bitcoin, saying that selling gold to buy Bitcoin is "the worst monetary mistake" the United States could make. As is known, America has more than 8,000 tons of gold on its balance sheet - the largest gold reserves in the world. ; ;

The US Dollar Rises Ahead of the Federal Reserve's Announcement

With the start of trading this important week. The US dollar index DXY, which measures the performance of the US dollar against a basket of major currencies, stabilized higher above the 107.00 peak, the highest for the index in 3 weeks. Furthermore, in a cautious waiting mode until the US interest rate decision and the evaluation of key economic data. The US Federal Reserve is widely expected to cut the federal funds rate by another 25 basis points, but investors will closely monitor the updated economic forecasts, especially expectations of a US interest rate cut in 2025, and in general, the markets now expect only three cuts.

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Gold Price Technical Analysis and Expectations Today:

According to today's gold analysts, the neutral performance on the daily chart indicates a strong upcoming move, and I still prefer the possibility of an upward rebound to the psychological level of $2,700 per ounce. The gold market is currently focusing on global geopolitical tensions and the return of central banks to buying gold again. I still recommend buying gold from every downward level but without risk and activating take-profit and stop-loss orders to ensure the safety of the trading account from any sudden price reversals. Currently, the closest support levels for gold prices are $2638 and $2620, respectively.

Regarding the performance of technical indicators, the Relative Strength Index (RSI) is currently neutral, which confirms the balance between bears and bulls awaiting any new developments. The momentum indicator is tilted upwards and has the opportunity for further gains before reaching overbought levels.

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Original Source DailyForex.com provides daily fundamental and technical analysis and signals for those looking to trade based on trends in the currency markets.