Gold Outlook: The yellow metal has no clear direction with weak upward momentum
Gold prices recorded a slight increase at the end of Weekly trading, settling at $4001.28 per ounce, supported by the weakness of the US dollar and fears of the continued US government shutdown, which has entered its 39th day.
Prices had touched $4019 on Thursday, but failed to close above it, while the market continues to fluctuate between $3886 and 4046 per ounce, with optimists clinging to the strength of the fifty-day moving average at $3878.
Gold benefits from stock volatility and dollar fluctuation
Uncertainty over the government shutdown in America has helped renew demand for safe havens. On the other hand, indicators were recorded "Wall Street"which relies heavily on technology stock indexes, posted its worst weekly loss in 7 months, as traders questioned the ability of the recent AI-driven rally to hold.
At the same time, the The US dollarat 99.556, down 0.14%, making dollar-denominated bullion more attractive to foreign buyers.
Demand decline in India, Chinese restrictions
Demand for gold in India fell following the end of the local festival season, forcing traders to offer deep discounts to move the slack around. As for China, the market is monitoring the reforms proposed by Beijing to the rare earth licensing system, and the implications of canceling the tax exemption on traders of the yellow metal.
Gold price expectations
The weakness of the US dollar is what is currently supporting gold as a result of renewed bets on the Federal Reserve lowering interest rates in December, but this support is still limited and insufficient to launch a strong rising wave.
The technical analysis of the platform indicates "FX Empire" As long as the resistance levels hold between the upper limit ($4020) and the lower limit ($3928), the gold structure will remain cohesive at the current levels.
Gold currently maintains its position above $3980 to $4000, but it needs a clear breakthrough above $4019 to rise to higher levels, and in return, any close below $3964 will turn gold into a negative trend.
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