Gold Price Hits Monthly High
The XAU/USD chart shows:
A notable peak in November near the $2716 level (indicated by the first arrow);
Yesterday, gold surpassed this peak, reaching a new one-month high.
Factors Supporting Bullish Sentiment
Yesterdays US Consumer Price Index data met analysts expectations. This bolstered market speculation about a Federal Reserve interest rate cut in December, enhancing the appeal of non-yielding assets like gold.
Geopolitical tensions in Eastern Europe and the Middle East, along with uncertainty surrounding the policy direction and tariff plans of newly elected US President Donald Trump, are contributing to golds safe-haven appeal.
Technical Analysis of XAU/USD
Gold prices have been rising since August within a channel, with the lower boundary marked as Support 1. However, in November, Support 2a line with a gentler slopegained relevance, potentially signalling waning demand strength.
If buyers are indeed losing momentum, a price reversal from the fresh high could occur. This would suggest a false bullish breakout above the mid-November peak near $2715. Early trading action on the XAU/USD chart this morning lends weight to this potential scenario.
Read more: https://fxopen.com/blog/en/oa-gold-price-hits-monthly-high/
Text source: Forex Trading Blog
