Article by: ETO Markets
Gold prices (XAU/USD) extended their upward momentum on Wednesday, rebounding from a one-week low near $… as safe-haven demand increased amid heightened geopolitical tensions. The protracted Russia-Ukraine conflict saw intensified Russian strikes, including the use of hypersonic missiles, while Ukraine targeted locations deep inside Russia, raising fears of further escalation. Concurrently, US President-elect Donald Trump’s renewed tariff threats against Canada, Mexico, and China added to global economic uncertainties. Despite strong US consumer confidence data, with November's index hitting a high of 111.7, the US Dollar consolidated near its weekly lows, reflecting market caution as investors assessed the Federal Reserve's divided outlook on rate cuts. Attention now turns to key US economic data, including inflation and GDP figures, for additional direction. Meanwhile, a notable de-escalation in the Middle East occurred as Lebanon and Israel reached a US-brokered ceasefire, providing a glimmer of geopolitical stability.
From a technical standpoint, Gold's rebound from the 50% Fibonacci retracement level suggests bullish momentum. Key resistance lies at the 61.8% Fibonacci level near $…, with potential targets at 50-period SMA near $…. On the downside, immediate support could be at 31.8% Fibonacci level near $…. with a break below exposing the 100-day SMA at $… and the monthly low at $…. A failure to hold these supports could resume the broader corrective decline from October's $… peak
