GOLD | May Get Boost from Macro Trends

8 בנוב׳ 2023

XAUUSD OUTLOOK:
- Gold and silver prices have retreated in recent weeks, but their outlook remains constructive
- If bond yields continue to push lower, precious metals could shine heading into 2024
- This article explores XAUUSD key levels to watch this week

Gold prices have fallen in the past few weeks due to the easing of geopolitical tensions in the Middle East and reduced demand for safe-haven assets. The situation has not escalated into a broader conflict involving other countries like Iran or Lebanon. Instead, traders have turned their focus to the bullish stock market, causing a shift away from non-yielding assets.

Despite recent market dynamics, there are reasons to be optimistic about precious metals. One catalyst for their prices could be the pullback in rates, especially if the correction accelerates in the near term.

XAUUSD PRICE TECHNICAL ANALYSIS
Gold has seen a modest retreat in recent days after failing to take out resistance in the $2,010/$2,015 range late last month. If losses deepen in the coming trading sessions, support appears at $1,960, followed by $1,945. While there's potential for the metal to find stability in this area before making a comeback, a breakdown could open the door for a move toward $1,920.

On the other hand, if the bulls engineer a resurgence and propel prices upward, overhead resistance is located at $2,010/$2,015 as mentioned earlier. Upside clearance of this technical barrier would reignite bullish sentiment, setting the stage for a rally towards $2,060. On further strength and sustained momentum, buyers may gain the confidence to challenge this year's high at $2,085.