Gold prices rose earlier this month towards their highest levels in 9 months, and recorded levels of 1928 dollars an ounce, taking advantage of speculation about the direction of the Federal Reserve to slow down the pace of raising interest rates and gold achieved successive and rapid gains since the beginning of November 2022 that exceeded 18%, It is a pace that accelerated the arrival of prices to overbought areas from a technical point of view, which investors considered as an opportunity to carry out profit-taking operations that brought gold back towards current levels close to $1900 an ounce.
(Figure 1): XAUUSD, Long Term, CFI Brokerage
Speculation is currently taking place as to whether the fundamental and technical factors will continue to support the continuation of gold's rise.
Fundamentally:
- The prospects for economic performance for the coming period are still uncertain, and economists and financial institutions are still in a state of continuous assessment of the direction of the economy.
- In addition, the Fed's policy towards interest rates is still considered a strict policy, even with tendencies to slow the pace of interest rate hikes in the coming times.
And technically:
The trading of the year 2022 showed a state of confusion between sellers and buyers, and the year ended without any of them outperforming the other, as prices finally settled at the same opening levels, and this indicates that prices will be subject to continuous fluctuations, waiting for one who will outperform the other.
(Figure2): XAUUSD, 2022 Trading, CFI Brokerage
As for the short and medium term, the following chart shows the most important levels of expected support and resistance for the coming period, determined by supply and demand factors according to various technical and fundamental data.
(Figure 3): XAUUSD, Short-Medium Term, CFI Brokerage
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