Technical Analysis

GOLD Analysis – November 24, 2021

By LonghornFX Technical Analysis
Nov 24, 20213 min

Gold’s Daily Price Analysis

Gold prices ended the day at $1791.60, with a high of $1812.45 and a low of $1781.75. Gold prices fell for the fourth straight session, reaching their lowest level since November 4th, owing primarily to surging US dollar prices. The US Dollar Index, which measures the value of the greenback against a basket of six major currencies, rose for the third straight session on Tuesday, reaching 96.61. While the 10-year Treasury note yield in the United States reached its highest level since mid-October on Tuesday, at 1.68 percent. While the 10-year Treasury note yield in the United States reached its highest level since mid-October on Tuesday, at 1.68 percent.

On the data front, at 19:45 GMT, the Flash Manufacturing PMI stayed unchanged at 59.1. The Flash Services PMI in November fell to 57.0 from 59.1 expected, weighing on the US dollar and causing gold prices to fall further. At 20:00 GMT, the Richmond Manufacturing Index increased in November to 11 from 10 expected, supporting the US dollar and adding to the decrease in gold prices.

The US dollar was high in the market, owing to renewed hopes that interest rates in the United States will rise next year following the re-nomination of US Federal Reserve Chairman Jerome Powell. The Dollar Index achieved a record 16-month high following the announcement of Powell's re-nomination, which increased confidence that the central bank will raise interest rates in 2022.

Initially, the market believed that President Joe Biden would favour Lal Brainard to be the next Fed chair since she was perceived to be more dovish than Powell in terms of monetary policy or longer-term economic stimulus. Investors currently believe that recently re-nominated Fed Chairman Jerome Powell will have to expedite the central bank's normalisation of monetary policy in order to deal with rising consumer prices.

Gold prices were falling as demand for it as an inflation hedge decreased day by day on bets that interest rate hikes would begin next year. However, the decline in gold prices was capped by growing fears about the spread of the coronavirus when European countries began enforcing new lockdowns to stem the mounting number of cases across the area.

GOLD Intraday Technical Level

Support Resistance

1778.09 1808.79

1764.57 1825.97

1747.39 1839.49

Pivot Point: 1795.27

GOLD - Technical Outlook

On Wednesday, the bullion gold is trading at 1,793 with a bearish bias. The metal has already breached a firm support level of 1,803, which currently acts as a gold barrier. On the bullish side, gold's major resistance stays at 1,895, which is extended by a pivot point level. The break above this level exposes gold prices towards the 1,807 and 1,824 levels. The RSI has entered the oversold zone.

On the downside, gold's immediate support is at 1,783, and a break below that level can push the gold price towards 1,760. The 20 and 50 days EMAs also indicate a selling bias below the 1,793 level; so, downtrend dominates below 1,795 and vice versa. All the best!


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