Fundamental Analysis

• U.S. Rate Cut Expectations Slightly Recede, But Central Bank Demand Remains Strong
• Gold’s Rally Pauses Amid USD Strength

XAUUSD Technical Analysis

Analyzing the daily chart for gold (XAUUSD), the price has rebounded from its upward trendline and is approaching the resistance level at 2,650 USD. With higher lows forming, a scenario where the price rises toward the neckline near 2,725 USD is also plausible.

While trading volume is thin due to the year-end holidays, overseas players are expected to gradually return to the market.

The immediate focus will be on whether gold can break above 2,650 USD. If it breaks downward, confirmation of a breakout below the downward trendline will be crucial.

Day trading strategy (1 hour)

On the 1-hour chart, gold is gradually rising, supported by the 10-period moving average. The price has broken above the recent high of 2,633 USD and extended gains to 2,639 USD.

From the daily chart perspective, gold has surpassed the 10-day moving average, suggesting a bullish outlook at the moment.

Day Trading Plan:

• Buy on dips, with a target of 2,650 USD for closing positions.
• If gold breaks below the descending trendline at 2,600 USD, consider this as the stop-loss level.

Support/Resistance lines

Key support and resistance lines to consider:

• 2,725 USD: Recent double top
• 2,650 USD: Monthly pivot resistance line

Market Sentiment

XAUUSD: Sell: 51% / Buy: 49%

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*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.