Explosion In Gold. Where To Next?

EASYMARKETS:XAUUSD   Gold Spot / U.S. Dollar
It has been quite a volatile year for XAUUSD and, judging by end of November and beginning of December activity, it continuous to be a volatile one, as we get closer to the new year. On the 4th of December we saw XAUUSD hitting a new historic high, reaching the area near the 2144-dollar mark. This way the precious metal surpassed its previous all-time high, near the 2082-dollar mark, reached in April of this year. That said, before the EU market open on the 4th of December, the yellow metal fell back below that previous high and at the time of writing it is struggling to get back above that barrier. If XAUUSD continues to trade below that 2082 zone, we may see a slight correction back down. That said, we may class that correction as a temporary one, before another leg of buying, as long as the price stays somewhere above a long-term tentative upside support line drawn from the lowest point of November 2022.

As mentioned above, if the price is able to stay somewhere above the 2082 hurdle, this may attract more buying interest, possibly dragging XAUUSD towards the newly-established all-time high, at 2144. If that hurdle gets broken, this will confirm a forthcoming higher high, placing the commodity into an uncharted territory. That’s when we will use the help of our Fibonacci extension tool, in order to try and find our next possible resistance target. As we can see from our chart, the next potential target is at 61.8% extension, which is around the 2180 level.

Alternatively, a drop back below the 2048 zone could signal a possible larger correction lower. In that scenario we will start aiming for the 2009 hurdle, marked by the highest point of October. If that hurdle is not able to halt the slide, we may see XAUUSD drifting below the psychological 2000 area, towards the 1933 level. That level marks the lowest point of November.

easyMarkets Account on TradingView allows you to combine easyMarkets industry leading conditions, regulated trading and tight fixed spreads with TradingView's powerful social network for traders, advanced charting and analytics. Access no slippage on limit orders, tight fixed spreads, negative balance protection, no hidden fees or commission, and seamless integration.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. easyMarkets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.

Come join us today at : www.easymarkets.com/