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The recent gold technical analysis rise reflected a 2% XAU bounce after a notable surge in early November. In any case, market sentiments and technical analysis played a significant role in the increase. The rise suggested potential further gains despite the risks facing the US dollar strength and US monetary policy decisions.

Gold Technical Analysis Rise Overview

The gold technical analysis indicated a strengthening market amid a steady pullback in November. The rise came after the gold price declined by over $250 from the October highs. Hence, it closed above the 100-day SMA, finding support near $2,550. The new level provided a strong recovery foundation.

The gold technical analysis rise rebounded over $2,600 after the Doji candlestick pattern signaled a bullish reversal on Friday. In general, gold maintained a strong momentum, while silver reflected a similar upward trajectory. The broader bluish trend remains solid as buyers helped to prevent further declines.

Gold Technical Analysis Rise Driving Factors

Several critical factors contributed to the rise in gold technical analysis. Overall, both fundamental and technical factors contributed to the rise. This section uncovers how broader economic concerns and market sentiments impacted the increase.

  • Technical Indicators

    The rise in gold technical analysis in early November resulted in oversold trading sentiments across various market timeframes. This gold pullback signaled a potential reversal, with support at the $2,550 100-day SMA providing a critical level for buyers to impact the market. Thus, the upward momentum signaled a rebound.
     
  • Safe-Haven Resilience

    Investors consider gold a safe-haven asset that boosts resilience for their market trades. They seek refuge in gold amid the ongoing US dollar strength fluctuations and global economic risks. Thus, the rise in gold technical analysis results from investors' hedge against global risks and inflationary pressures.
     
  • Hawkish Policies

    The gold price rise resulted from the Federal Reserve's recent hawkish monetary policy announcements. Chair Jerome Powel's comments emphasized robust economic growth and persistent inflationary pressures. The Federal Reserve report indicated that the US central bank will maintain tight policies for the foreseeable future.

Gold Technical Analysis Rise Aftermath

Gold faces several challenges maintaining the upward trajectory, including US economic monetary policy risks and market resistance. In other words, the 50-day and 20-day SMA levels will break the higher price.

Hence, gold will grapple with consolidation as buyers seek to maintain momentum. The FED indicated further rate cuts, making the US dollar's strength a critical factor in the market's future. Rate cuts might result in a downward trend.

Conclusion

The recent rise in gold technical analysis can be encouraging news for traders. However, the surge must navigate complex US monetary policies and overcome the resistance level to maintain momentum. Thus, the market's future depends on the strength of the US dollar and the inflation trend.

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