However, the bulls returned to the support at 2556.83 to challenge the bearish impulse. If the price breaks above the SMA, it will signal a continuation of the previous bullish trend.
On the other hand, if the SMA holds as resistance, the price will bounce lower to retest the 2556.83 support. A break below this level would mean a lower low, which would confirm the new downtrend. Furthermore, bears will target the support level 2350.26.
Main support levels
Support 1: 2556.83, a daily swing low
Support 2: 2550.52, a four-hour swing low
Support 3: 2350.26, a daily swing low
Main resistance levels
Resistor 1: 2791.10, a daily swing high
Resistor 2: 2745.53, a four-hour swing high
Resistor 3: 2670.47, a four-hour swing high
Final thoughts
Gold has been in a downward trend since Trump won the US presidential election and changed the outlook for Fed rate cuts. However, geopolitical tensions have returned demand for the yellow metal to safe havens, causing prices to rise. As market participants monitor developments between Russia and Ukraine, they will also keep an eye on incoming data. The US will release business activity data, which will set the outlook for the December Fed meeting. Better-than-expected numbers will reduce the likelihood of a rate cut and hurt gold. On the other hand, gloomy data will reinforce expectations for a rate cut in December, causing prices to rise.
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