Gold is trading on a positive bias, although its upside potential appears limited. The daily chart shows that gold is trading above the 200 EMA and above the 21 SMA which adds an optimistic outlook for the next few days.
Gold has a strong resistance around 1,812. On November 5, gold surpassed this resistance reaching the high of 1,876. A break of this level will probably indicate that the upward force prevails and the price could reach 7/8 Murray around 1,827.
XAU / USD advanced above the 200 EMA supported by optimism in equity markets and the weakness of the dollar that has been correcting for three consecutive days.
However, the yields of the US Treasury bonds had a yield of 1.5% which limited the bullish momentum of Gold. The volume in the market will decrease these days of holidays. Hence, spikes and falls could occur without a fundamental reason for this.
The daily chart shows the formation of a bullish pennant. Yesterday, the break of this pattern was confirmed. As long as the price negotiates and consolidates above 1,797, the target levels are seen at 1,828 (5/8) and 1,843 (6/8).
In the medium term, according to the daily chart, we can see that the trend for gold is bullish. Given that it has found good support at the 21 SMA located at 1,785, any correction towards this level will be considered an opportunity to continue buying for the next few days.
Support and Resistance Levels for December 24 - 27, 2021
Resistance (3) 1,829
Resistance (2) 1,823
Resistance (1) 1,812
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Support (1) 1,796
Support (2) 1,788
Support (3) 1,781
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A trading tip for GOLD on December 24 - 27, 2021
Buy above 1,797 (200 EMA) with take profit at 1,812 (4/8) and 1,828 (5/8), stop loss below 1,791.
