🟡Gold tests $2,600 as market corrects

1:53 PM 12 November 2024

Gold prices dipped to their lowest level since September 20th today, marking the largest correction of the year.

The correction, which began on October 31st, has already amounted to approximately 7% or $200 per ounce. The decline is linked to the so-called "Trump Trade," characterized by a strengthening US dollar and rising yields. Expectations of higher inflation under Trump's policies could push the neutral interest rate higher than initially anticipated. Given the prospect of rate cuts to 3.75% by the end of next year and assuming a risk premium on bonds, yields may not decline significantly with further rate cuts.

 

10-year Treasury yields have reached 4.4%. Source: XTB.

Gold is currently experiencing its most significant correction of the year, exceeding $200 per ounce. The price is now testing the $2,600 level, which coincides with the 38.2% Fibonacci retracement of the last major uptrend. The next significant support level lies at $2550, which aligns with the 50% Fibonacci retracement. Between $2550 and $2600 we can notice the rising trendline drawn on this year's lows and the 100-period moving average. Seasonality suggests a potential rebound at turn of November and December. 

Source: xStation5


 
Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits