The 21 December Gold Price Technical Outlook shows that the precious metal stalled its strong recovery move from last week’s near 5-month lows. Get more on this.
21 December, GKFX – Gold faced rejection near the very important 200-day SMA and has now surrendered all of its early gains to over 2-week tops.
• Subdued USD demand fails to provide a fresh bullish impetus.
• Reviving safe-haven demand helps limit profit-taking slide.
• Final US GDP revision eyed for fresh trading impetus.
The precious metal stalled its strong recovery move from last week’s near 5-month lows and struggled to gain any follow-through traction, despite subdued US Dollar demand.
A softer tone around the greenback, which tends to underpin dollar-denominated commodities – like gold, failed to provide the required momentum to break through a technically important barrier.
Meanwhile, possibilities of traders taking some profit off the table, especially after the latest leg of up-move of over 2.5% and ahead of the holiday season, could also be one of the factors capping any additional gains.
However, the prevalent negative trading sentiment around the European equity markets extended some support to the yellow metal’s safe-haven appeal and might now help limit deeper losses, at least for the time being.
It would now be interesting to see if bulls are able to regain their dominant position or the commodity extends its rejection slide as the market focus now shifts to the final US Q3 GDP growth figures, due later during the early NA session.
21 December Gold Price Technical Outlook
Immediate support is now pegged near the $1262-61 region, which if broken could extend the corrective slide towards $1255 horizontal support en-route $1246 level.
On the upside, bulls would be eyeing for a decisive breakthrough $1268-69 hurdle (200-DMA), above which the metal seems to head towards $1275 supply zone ahead of $1281-82 resistance.
This article “ 21 December Gold Price Technical Outlook” 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.
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