Technical Analysis

GOLD Analysis – November 30, 2021

By LonghornFX Technical Analysis
Nov 30, 20213 min

Gold’s Daily Price Analysis

Gold prices ended the day at $1788.45, with a high of $1801.50 and a low of $1783.35. Gold reversed course for the second day in a row on Monday, falling amid the strength of the US dollar. The US dollar enjoyed inflows due to its safe-haven status, notwithstanding market concern about whether this new form was more harmful than the Delta type. The new South African variant of coronavirus was spreading quickly, and it has now moved to the Netherlands, Denmark, and Australia. Given the increasing prevalence of potentially vaccine-resistant variations, an increasing number of governments have imposed travel restrictions to isolate the area against coronavirus.

According to the WHO, the new Omicron form has been substantially altered, posing a very high risk of infection. However, some investors believe that the impact may not be as bad as previously thought because a leading infectious disease expert in South Africa has stated that existing COVID-19 vaccinations may be useful at preventing severe sickness and hospitalization.

This report received much traction, and investors began to respond positively, causing a sell-off in safe-haven metals. The market reacted by believing that the variant would not be a considerable issue, putting additional pressure on precious metals, and gold fell on Monday. The greenback was solid across the board on Monday, continuing its positive trend for the second consecutive day and reaching a high of 96.44. In contrast, the 10-year Treasury note yield in the United States fell for the fifth straight day to 1.49 percent.

Meanwhile, at 20:00 GMT, Pending Home Sales increased in October to 7.5 percent, compared to the projected 0.8 percent, bolstering the US dollar and contributing to additional declines in gold prices, as both have a negative association. Furthermore, the US currency strengthened after Atlanta Fed President Raphael Bostic stated that the central bank's bond cut could be accelerated. With growing anxieties and concerns about the spread of the Omicron variety, market expectations of a rate hike have dipped slightly. However, Bostic's latest remarks bolstered the US currency and pulled gold prices lower on Monday.

GOLD Intraday Technical Level

Support Resistance

1780.70 1798.85

1772.95 1809.25

1762.55 1817.00

Pivot Point: 1791.10

GOLD - Technical Outlook

Technical side of gold continues to remain the same as investors seem to wait for the US NFP figures. The precious metal gold continues to trade sideways, maintaining a narrow trading range of 1,804 and 1,780 level. Oversold gold has risen over the $1,782 support level, with a 23.6 percent Fibonacci retracement level at $1,802 in sight. A rise in purchasing pressure might help gold break past a key resistance level at 1,803, taking it to $1,815 or $1,830.

On the other hand, a break of the $1,782 level might spark a sell-off until the $1,760 support level is reached. The RSI is above 50, indicating a positive turnaround in gold. As a result, bullish bias dominates above $1,791 with a target of $1,803. All the best!


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