Gold Analysis Today 11/11: Attempts To Recover Losses -Chart
Date
11/11/2024 2:31:40 PM
(MENAFN- Daily Forex)
Gold's attempts to rebound at the end of the US presidential election week trading failed, as its gains did not exceed the resistance level of $2710 per ounce. Moreover, it then resumed its recent downward trend and closed trading around $2684 per ounce. Trump's victory in the US presidential elections contributed to strong selling of gold, coinciding with strong gains in the US dollar. Furthermore, Gold losses extended to the support level of $2643 per ounce, the lowest price in a month. Before Trump's election, gold futures were on track to reach a historic peak of $2800 per ounce.
Why have gold prices fallen sharply recently?
Gold prices recorded their largest weekly decline since last May, and the performance was primarily due to the interaction of financial markets and investors with the repercussions of Donald Trump's presidency of the United States and the recent US interest rate decision by the Federal Reserve. The Federal Reserve cut interest rates by 25 basis points as expected on Thursday, while signalling a cautious and deliberate stance on any further rate cuts. However, markets are pricing in higher interest rates from the Fed, as the new US president's policies – which focus on raising tariffs, cutting taxes and deregulating – are expected to widen the deficit and drive inflation.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money
Despite the performance, demand for gold remained strong. The World Gold Council reported that global physically backed gold exchange-traded funds saw inflows for the sixth straight month in October, adding that demand was supported by flows from North America and Asia. The World Gold Council added that gold-backed ETFs attracted $4.3 billion in inflows in October, bringing collective holdings to 3,244 tonnes. In addition, gold prices may get an additional boost from China's new stimulus that aims to raise the debt ceiling of local governments to 35.52 trillion yuan, allowing them to issue an additional six trillion yuan in special bonds over three years to swap hidden debt Price Analysis and Forecast Today:
EURUSD Chart by TradingView
According to gold analysts, the gold price index is likely to see support as a hedge against inflationary pressures resulting from increased US government borrowing, arguing that the price drops the day after the election was surprising and exaggerated. According to gold trading platforms, the price of gold has risen by about a third this year to successive record highs, with gains supported by growing geopolitical and economic risks, increasing purchases by central banks and investors. Therefore, any decline in gold prices may be an opportunity to buy if global geopolitical tensions continue to rise. Currently, the closest support levels for gold are $2665, $2628, and $2585 per ounce. From this level, the overall gold trend will be confirmed to be bearish.
On the other hand, according to the performance on the daily chart, stability around and above the resistance of $2,700 per ounce will remain a stimulus for the bulls to control the trend.
Ready to trade our Gold forecast ? We've shortlisted the most trusted Gold brokers in the industry for you.
MENAFN11112024000131011023ID1108873412
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.