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MENAFN- Daily Forex)
Recently, Gold prices recorded one of their strongest weekly gains in years. By the end of trading on last Friday's session, the gold price index jumped to the resistance level of $2715 per ounce from $2668 per ounce in the same trading session.
Thus, according to gold trading platforms, the gold price recorded gains of 5.5% over the past week's trading. Consequently, the gold price has regained more than half of its losses since it reached a new record high at the end of October, reaching the $2800 per ounce peak, followed by strong selloffs to take profits, coinciding with Trump's victory in the US presidential elections Price Forecast for the Coming Period
Global geopolitical tensions continue to provide more positive momentum to gold prices, with which gold traders ignore the strength of the US dollar, which is usually counterproductive to the gold market. The developments of the Russian-Ukrainian war and the growing fears of its expansion and the length of the conflict will remain a stimulating environment for further purchases of gold bullion. In addition, the path of the US Federal Reserve's policies is being monitored, as bets have increased, especially after the US Federal Reserve Governor's recent statements that the bank will not be hasty in further interest rate cuts of the US Bond Market
Despite the continued gains of the US Dollar Index (DXY) to its highest level in two years, the US bond market has recently shown signs of stabilization after two months of selling, as investors began to rush whenever yields tested new peaks. Meanwhile, Trump's victory drove 10-year Treasury yields sharply higher. However, after the global benchmark exceeded 4.5% on November 15, it quickly reversed course amid a wave of large purchases and has not breached this level since. Also, the 10-year Treasury yield closed last Friday at 4.4%, down 3 basis points from the previous week's close.
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According to today's gold analysts' forecasts, the return of the gold price around and above the psychological resistance of $2700 per ounce has confirmed the formation of an upward channel. According to the current gold prices, the bulls' control of the trend has strengthened, increasing the possibility of returning to the $2800 per ounce peak again if prices move towards the peaks of $2745, $2766, and $2780 per ounce, respectively.
EURUSD Chart by TradingView
Also, it should be considered that the US holiday this week may weaken liquidity and dampen investor appetite, which may cause the gold price to move in narrow ranges according to recent performance unless there are any serious global geopolitical tensions during that period that increase gold purchases. However, at the same time, do not be surprised if there are profit-taking sales for gold at any time.
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