What Drives Prices Up in the Asian Session?
Gold prices rose again in the Asian session on Wednesday (December 3rd) after holding around $4,164, nearing its highest level since late October. This increase was driven by strong expectations that the Federal Reserve will cut interest rates next week. Speculation that Jerome Powell's successor might be more dovish also weakened the US dollar, giving room for gold—which offers no yield—to strengthen.
In addition to interest rate factors, geopolitical tensions such as the Russia-Ukraine conflict have led investors to once again look to gold as a safe haven asset. Although sentiment in the stock market is quite positive, many market participants are awaiting US economic data due this week, including the ADP report, the ISM Services PMI, and especially the PCE inflation data on Friday, which could determine the direction of gold prices going forward.
The gold price at the time of this analysis was released was at $4,221.
- Buy if the price reaches $4,228.
- Sell if the price reaches $4,214.
Resistance 2: $4,242.
Resistance 1: $4,235.
Support 1: $4,207.
Support 2: $4,200.
Disclaimer:
This article is analytical in nature and does not constitute a definitive reference. Please consider fundamental and technical developments in trading before making any investment decisions.
Source: Newsmaker.id
