Gold futures on New York’s Comex and the global spot price of bullion recorded gains on the day, but both saw weekly declines for the third consecutive week. These losses were attributed to ongoing bond sell-offs and the strength of the U.S. dollar.
The most-active gold futures contract on Comex, December, concluded the day’s trading at $1,847 per ounce after officially settling at $1,845.20 on Friday, marking a gain of $13.40, or 0.7%. However, earlier in the day, it hit a seven-month low of $1,823.55.
The spot price of gold, which is closely monitored by some traders, settled at $1,832.59, up $12.33, or 0.7%, on the day. It had reached a seven-month low of $1,810.47 earlier in the session.
According to market outlooks, gold dropped to $1,810, falling below the 200-week Simple Moving Average (SMA) of $1,815. This prompted retail short covering as uncertainties increased over the weekend. The rebound pushed the price to $1,835, ultimately closing at the 5-Day Exponential Moving Average (EMA) of $1,832.
Indicators like the Relative Strength Index (RSI) and Stochastics are beginning to show an upward turn, suggesting a strong rebound. This rebound is expected to target the 4-Hour 50 EMA at $1,846 and the 100-Week SMA at $1,855. Beyond this range, the bullish rebound could continue, aiming for $1,863-$1,869, followed by $1,881. Any correction down to $1,828-$1,820 may be viewed as a buying opportunity.
Geopolitical tensions arising from the Israel-Palestine conflict have added uncertainty to the market, potentially triggering a surge in demand for safe-haven assets like gold. Analysts anticipate that the rally could swiftly reach $1,927.
