24K99 News On Thursday (January 5) in the European market, the spot gold suddenly fell rapidly in the short term. The price of gold just fell below 1845 US dollars per ounce, a sharp drop of 10 US dollars within the day. FXStreet analyst Haresh Menghani, a well-known financial website, recently wrote an article to analyze the technical outlook of gold prices.
(Source of spot gold 15-minute chart: FXStreet)
Spot gold closed up 0.85 percent at $1,854.34 an ounce on Wednesday, after rising as much as 1.4 percent to hit $1,865.09 an ounce, its highest level since June 13 last year.
At 21:15 Hong Kong time on Thursday, the US ADP employment data for December will be released. ADP data is known as “small non-agricultural” and has a greater influence on the market.
According to authoritative media surveys, the number of ADP employment in the United States is expected to increase by 150,000 in December, after an increase of 127,000 in November.
Analysts pointed out that if the ADP employment data is worse than expected, the dollar may be suppressed, which will promote the rebound of gold prices.
The latest technical analysis of gold
Menghani pointed out that from a technical point of view, the decline in gold prices may find support near the highs of previous months, around $1,833 an ounce. Next is the $1824-1822/oz area, which should be the near-term bottom for gold prices.
Menghani said that if gold prices fail to hold the above-mentioned support level, it may trigger some technical selling and push gold prices back towards the $1,800 an ounce mark.
Gold’s corrective decline could even extend towards the key 200-day moving average, currently around $1,780.
(Source of spot gold daily chart: FXStreet)
On the upside, Menghani pointed out that Wednesday’s high (around $1,865 an ounce) could pose a short-term barrier to gold prices, with the next resistance in the $1,870/ounce area. Some follow-through buying will be seen by bullish traders as a new trigger and pave the way for gold to reclaim the $1,900/oz mark for the first time since May 2022.
At 16:48 Hong Kong time, spot gold was trading at US$1,844.21 an ounce.
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