Gold Prices Plunged, But Rebound is On The Way 

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the GOLD for DEC 19, 2024. 

Fundamental Analysis 

GOLD Key Takeaways 

• Fed hawkish rate cut: The Fed’s December interest rate decision cut by 25 basis points as expected, and the statement hinted at a slowdown in the pace of rate cuts. The dot plot shows that the forecast for rate cuts next year has been adjusted from 4 to 2. The rate cut expectations were directly cut in half, the US dollar index rose violently by 120 points, and spot gold plunged during the session. 

• Powell’s attitude: Fed Chairman Powell said at a press conference that he could be more cautious when considering interest rate adjustments in the future, and the path depends on making more progress in reducing inflation. It may take another year or two to reach the inflation target. It is unlikely to raise interest rates next year. 

Technical Analysis 

GOLD Daily Chart Insights 

(GOLD Daily Price Chart, Source: Ultima Markets MT4) 

• Stochastic oscillator: The fast line sent a short signal above the 50 median line, and then quickly fell to the lower half of the area, suggesting a strong short-term short trend. 

• Upward trend line: Gold fell rapidly yesterday and broke the upward trend line. During the Asian session, the exit of profitable funds may drive the gold price to rebound upward. 

• Key support level: The gold price is about to approach the order block (OB) level of 2566.46. Before it falls below this support level, gold still has the probability of continuing to rise. On the contrary, after the space below is completely opened, the gold price will look to the vicinity of the green 200-day moving average. 

GOLD 1-hour Chart Analysis 

(GOLD H1 Price Chart, Source: Ultima Markets MT4) 

• Stochastic oscillator: The indicator sends a long signal in the oversold area, suggesting that the shorts retreat and profitable funds leave the market. The market price may rebound during the Asian session. 

• Fibonacci retracement level: In the short term, the gold price is mainly rebounding and rising, and pay attention to the Fibonacci retracement level of the downward trend. The first target is at least the 50% retracement level, which is also near the red 13-period moving average. 

GOLD Pivot Indicator 

(GOLD M30 Price Chart, Source: Ultima Markets APP) 

• According to the trading central in Ultima Markets APP, the central price of the day is established at 2613, 

• Bullish Scenario: Bullish sentiment prevails above 2613, first target 2633, second target 2651; 

• Bearish Outlook: In a bearish scenario below 2613, first target 2576, second target 2557. 

Conclusion 

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