Source: FXStreet
Author: Anil Panchal
Article: Original article
Publication date: Tuesday, December 6, 2022
Gold price is still at the level of $1778 as the dollar tries to keep the upside from the week start on Tuesday. Technical analysis helps to ensure the bullish sentiment of bullion purchasers even during market corrections.
Gold reversed from a horizontal resistance of six months ago, which was at about $1805, to the upward support line from early November at around $1,765 by the press time. A steady RSI and weak MACD signals also give certain hopes to the buyers.
Gold daily chart
It’s necessary to note, though, that the 61.8% Fibonacci retracement level of the gold’s decline on June-September, which was at about $1778, and also the 200-DMA hurdle at around the $1,795 level will limit the growth of gold prices.
Meanwhile, downward break of the mentioned support line at about $1765 will straightforwardly lead gold prices to the lows of late November at about $1721.
In general, gold is expected to remain more resilient, but its growth prospects look limited.
Forecast: gold is likely to increase to $1800
This content is for informational purposes only and is not intended to be investing advice.
