Gold is consolidating following last week’s decline. The price retreated from its November 13 peak of $4,245 and is now moving sideways, attempting to hold above the psychological level of $4,000. Today's early trading reflects cautious sentiment in the wake of the drop, with an equilibrium between buyers and sellers.
The technical setup confirms these market conditions, as most indicators unanimously signal a correction. The Stochastic Oscillator, being in neutral territory, shows that the %K line (57) has already reversed downward after crossing below the %D one (69), indicating waning buying momentum. The Chaikin Oscillator tells a similar story, having fallen from recent extremes and confirming the loss of its upward impulse. Bollinger Bands (20, 2) add the final touch to this picture: the price is trading near the middle line ($4063.51), attempting to hold this key level, while the narrowing bands suggest a volatility squeeze. However, the slowdown in the Chaikin Oscillator’s descent and the proximity to support could underpin quotes and facilitate a rebound.
Fundamental factors remain mixed. On the one hand, the release of delayed macroeconomic data from the United States and the reduced probability of a Fed rate cut in December (46%) are weighing on the non-yielding metal.
On the other hand, persistent geopolitical risks, such as escalating tensions between China and Japan over Taiwan, continue to fuel demand for gold as a safe-haven asset. Threats of Beijing's economic retaliation and overall uncertainty in global trade relations are creating structural support for the precious metal.
Keep in mind the following trading strategy:
Buy gold during its rebound from the SMA 20 ($4,063.51), confirmed by trading volumes. Place Take profit at $4,210.00 and Stop loss at $3,950.00.
The forecast is valid from November 17 to November 24, 2025.
This content is for informational purposes only and is not intended to be investing advice.
