XAUUSD1! Gold Spot XAUUSD Soars Above $4240 - Traders Eye Profit Booking After 8% Monthly Rally....Gold Market Update - Spot XAU/USD
Gold prices extended their impressive rally today, with spot gold (XAU/USD) surging to an intraday high of $4240.06 per ounce, reinforcing the strong bullish trend that has persisted since early November. The market gained nearly +60 points intraday, reflecting consistent buying pressure across multiple timeframes.
Since Monday, gold prices have climbed from $3997.87 to $4240.06, a gain of over $240 (+6%) in just four trading days. On a monthly basis, from November 1 to 13, prices have advanced from $3915.17 to $4240.06, marking an 8% rise. Meanwhile, Gold December futures also touched a session high of $4244.95 per ounce.
Key Drivers Behind the Rally
Rate Cut Expectations: Persistent weakness in U.S. labor data has fueled expectations that the Federal Reserve may cut interest rates in December, driving renewed interest in non-yielding assets like gold.
Central Bank Demand: Sustained gold buying by central banks, particularly the People’s Bank of China, which added to its reserves for the 12th consecutive month, has lent strong support to bullion prices.
Market Adjustments: While the broader trend remains bullish, recent sessions indicate that momentum may be slowing as traders reassess the probability of an imminent Fed rate cut.
Trading Strategy - Gold Spot (XAU/USD)
Option 1 - For Existing Holders
Those holding long positions from $4000–$4025 may consider booking profits near $4240 and averaging positions for targets at $4120/$4110/$4100 in the coming sessions.
Option 2 - For New Traders
Fresh short positions can be initiated near $4240 with targets at $4180/$4150/$4100, aiming to capture the anticipated short-term correction.
Option 3 - For Intraday Traders
Intraday traders can look to sell around $4240 for a $60 - $80 potential downside move before the US session begins. Watch for targets around $4180/$4170/$4160 during today’s trading hours.
Don’t miss this short-term opportunity - volatility remains high, and a swift correction is possible in the next few hours.
Conclusion
After an impressive four-day and month-long rally, gold appears overbought in the short term. With slowing momentum and cautious sentiment ahead of key US data, a round of profit booking is likely. Traders should prepare for a short-term correction before the next directional move.
