GOLD Analysis – December 14, 2021

Gold’s Daily Price Analysis

Gold ended the day at $1786.25, having reached a high of $1792.05 and a low of $1782.35. Gold gained ground for the second day in a row as traders took positions ahead of this week's crucial central bank meetings. The central bank is anticipated to indicate the rate at which pandemic-era economic assistance measures would be phased out. Gold was finding support because no central bank was expected to raise interest rates this week. In addition to the Fed, the European Central Bank and the Bank of Japan will review their monetary policies this week.

The European Central Bank will half the volume of assets it purchases each April. Reduced monetary stimulus and interest rate hikes tend to raise government bond yields, increasing the potential cost of storing non-interest-bearing bullion.

On Monday, the US Treasury yield on the key 10-year note fell dramatically to as low as 1.41 percent, giving the yellow metal some support. The US Dollar Index rose to 96.44 on Monday, limiting further gains in gold. Gold was also benefiting from the previous week's high inflation data. Consumer prices in the United States climbed further in November as the cost of products and services surged substantially due to supply restrictions, resulting in the highest annual increase since 1982.

The World Health Organization reinforced its warning, saying that the Omicron coronavirus variety has been documented in more than 60 countries and constituted a very high worldwide risk, with some indication that it evades vaccine coverage. Nevertheless, clinical data on its severity is still few. However, the ambiguity surrounding Omicron and its possible hazard to the economic recovery due to its high immunity to vaccines heightened market concerns and elevated gold's safe-haven appeal.

GOLD Intraday Technical Level

Support Resistance

1782.74 1793.34

1777.17 1798.37

1772.14 1803.94

Pivot Point: 1787.77

GOLD - Technical Outlook

Gold is trading at $1,786, surging from the $1,782 support level. Gold has violated the pivot point resistance level at the $1,782 mark and is now trading above the same level. The pivot point level is acting as a support and has the potential to keep gold bullish.

On the higher side, gold’s significant resistance stays at the 1,791 level, and an upward breakout of 1,791 exposes the metal towards 1,800 or 1,810 levels. On the lower side, the break below the 1,780 mark reveals the precious metal’s downtrend until 1,772 or 1,761 level. Good luck!