Gold prices, after reaching a local high at the end of October due to widespread geopolitical risks in the Middle East and Ukraine, have significantly corrected downward and are currently trading within a broad sideways range. The anticipation of new economic policies under D. Trump starting in 2025 is having a notable impact on gold, as well as on the broader financial markets.
Year-End Outlook
Evaluating the pre-New Year prospects for the pair, it is likely that the sideways trend will persist.
Technical Analysis and Trading Idea
- Price position: Gold is trading above the middle Bollinger Band but below the SMA 5, while still above the SMA 14.
- RSI Indicator: The RSI is crossing the 50% level, which could signal a potential local sell-off.
- Stochastic Indicator: Stochastics are declining, further supporting the likelihood of downward movement.
A local drop below the 2622.15 level could trigger further declines toward 2608.00.
