Gold Price Technical Forecast


Though initially weighed down by optimism over the long-awaited legislation to overhaul the US tax code, the 18 December Gold Price Technical Forecast shows that renewed US Dollar weakness extended some support to the dollar-denominated commodity.

18 December, GKFX – Gold caught some fresh bids near $1252 immediate horizontal support and jumped to session tops during the early European session on Monday.

Key Quotes

•  US tax bill hopes-led USD strength fizzles and provided a fresh boost.

•  Traders ignore risk-on mood/renewed uptick in the US bond yields.

The precious metal was initially weighed down by optimism over the long-awaited legislation to overhaul the US tax code. However, some renewed US Dollar weakness extended some support to the dollar-denominated commodity and helped regain traction.

Meanwhile, a goodish pickup in the US Treasury bond yields did little to dampen a mildly positive sentiment surrounding the non-yielding metal.

Moreover, the market seems to have largely negated the prevalent risk-on environment, which tends to weigh on the yellow metal’s safe-haven appeal, with the USD price dynamics turning out to be an exclusive driver of the commodity’s uptick at the start of a new trading week.

In absence of any major market moving economic releases, broader market sentiment around the greenback would remain a key determinant of the commodity’s move a the start of a new trading week.

18 December Gold Price Technical Forecast

Bulls would be eyeing for a strong follow-through momentum beyond $1260 level, above which the commodity is likely to aim towards testing the very important 200-day SMA hurdle near the $1268 region.

On the flip side, any meaningful retracement might continue to find support near $1252 level, which if broken could accelerate the fall back towards $1248-47 horizontal support en-route the $1242-41 region.

Disclaimer

This article “18 December Gold Price Technical Forecast ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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