Technical Analysis

GOLD Analysis – December 02, 2021

By LonghornFX Technical Analysis
Dec 2, 20213 min

Gold’s Daily Price Analysis

Gold prices ended the day at $1783.80, having reached a high of $1794.40 and a low of $1774.00. After falling for three straight sessions, gold prices regained some support and changed tack on Wednesday. Gold rose on coronavirus fears after the United States identified its first Omicron coronavirus variant case in California.

The patient was isolated after returning to California from South Africa on November 22. According to the CDCP, the individual had been fully vaccinated and was experiencing moderate symptoms that were resolved. Furthermore, the individual's close connections have tested negative. Concerns over the virus's spread, on the other hand, drove demand for safe-haven assets such as gold, which pushed its prices higher on Wednesday.

Meanwhile, gold's recovery from a three-week low could be linked to traders weighing the spread of the Omicron variant against remarks from Fed Chair Jerome Powell on the need to limit inflation. Researchers worldwide are racing to properly comprehend the significance of the Omicron variation, which was discovered in South Africa. To halt its spread, numerous countries have imposed travel restrictions, as fears about the strain's possible immunity to vaccine protection have grown in the market. On the other hand, Fed Chair Powell underlined that the central bank would keep inflation under control and explore hastening withdrawing monetary support.

The US Dollar Index, which measures the dollar's value against a basket of six major currencies, reached 96.04. On Wednesday, the 10-year Treasury note yield in the United States decreased for the seventh straight session, reaching 1.40 percent.

On the economic front, at 18:15 GMT, the ADP Non-Farm Employment Change increased to 534K from 525K expected, supporting the US dollar and adding to gold price increases. At 19:45 GMT, the final manufacturing PMI for November fell to 58.3 from 59.1 expected, weighing on the US dollar. Spending on construction remained unchanged at 0.2 percent. The ISM Manufacturing Price Index dropped to 82.4 from 85.5 predicted, putting pressure on the US currency. These bad macroeconomic data put additional pressure on the US dollar and pushed gold higher on Wednesday.

GOLD Intraday Technical Level

Support Resistance

1773.74 1794.14

1763.67 1804.47

1753.34 1814.54

Pivot Point: 1784.07

GOLD - Technical Outlook

Gold technical outlook turns bearish as it has violated a strong support level of $1,782 level. Closing of candles below the pivot point support become resistance level of 1,782. Now it’s supporting selling bias in gold. The precious metal gold is gaining support at 1,769 level and a break below this exposes it towards 1,760 and 1,745 level.

On the other hand, a break of the $1,782 level might spark an uptrend until the $1,798 and 1,808. The RSI is below 50, indicating a negative turnaround in gold. As a result, bearish bias dominates below $1,782 and vice versa. All the best!


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