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Gold Technical Analysis – December-16-2023

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FxNews – The price of gold experienced a significant surge on Friday, December 15, reaching as high as $2,048. This peak coincides with a pivotal point in the market. During this time, as the XAUUSD bulls tested this pivot, and the Relative Strength Index (RSI) entered the overbought zone. This shift was a critical signal, hinting at a potential trend reversal or the start of a consolidation phase. Consequently, the price of gold sharply retreated to its 61.8% support level, settling around the $2,014 mark.

Gold Technical Analysis - December-16-2023

XAUUSD Technical Analysis – 4H Chart

XAUUSD Technical Analysis: Bullish or Bearish?

FxNews – It is crucial for the bulls to maintain the price of gold above the 61.8% support level. Should they fail, and the bears succeed in closing and stabilizing the price below this key level, a further decline is likely. In such a scenario, the next probable target would be the 78.6% support level. Notably, the $1,978 mark stands as a robust support point, owing to its alignment with the 78.6% Fibonacci retracement level, potentially offering more resilience than the 61.8% support.

Conversely, the pivot point has acted as a strong barrier for the bulls, restraining the XAUUSD price from climbing further. For the bulls to advance, overcoming the bearish flag and then surpassing the pivot is essential. Achieving this would not only be their initial task but also a critical move to invalidate the current bearish technical analysis. Should the bulls succeed in this endeavor, a significant rise in price could be anticipated, with the 23.6% resistance level being their initial target.

  • 16 December 2023
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