Article by: ETO Markets
Gold (XAU/USD) enters the final trading session of 2024 at a critical technical juncture, with price action consolidated near $… after an impressive 27% annual gain. The fundamental landscape remains complex, with geopolitical tensions providing underlying support while monetary policy expectations create headwinds. The Russia-Ukraine conflict and Middle East tensions, particularly recent developments involving Houthi militants and Russian security concerns, maintain a steady safe-haven bid. However, the Federal Reserve's hawkish pivot regarding 2025 rate cuts has tempered immediate upside potential. The anticipated transition to the Trump administration introduces additional market uncertainty, particularly regarding potential trade policies that could influence safe-haven demand. The immediate price action suggests a cautious trading environment, with declining volumes characteristic of year-end positioning.
From a technical perspective, the market has established a clearly defined trading range with multiple validation points. Primary support rests at $…, the December 19 low, reinforced by substantial trading volume and the converging 50-day Simple Moving Average at $…. This support zone has demonstrated remarkable resilience, with multiple successful tests suggesting strong institutional buying interest. The immediate resistance structure is equally well-defined, with the December 12 high at $… forming the upper boundary of the current consolidation pattern. The 9-day and 14-day EMAs have formed a resistance cluster between $…-…, creating a significant technical barrier that requires substantial momentum to breach. Recent swing high, MA 55 and MA 20 reinforms the support around $…. The declining volume pattern during recent consolidation suggests an impending volatility expansion, with the directional resolution likely to define the early 2025 trading landscape.
