Gold price gains are likely to remain subdued as the US dollar continues to be supported by the hawkishness of the Federal Reserve at its December meeting. Trump’s protectionist policies are fueling inflation expectations, setting the stage for higher interest rates.
In addition, amid Christmas holidays and reduced trading volumes, market participants are inclined to maintain positions in the US currency.
Thus, gold is still seen as an attractive instrument to sell in case of attempts of its recovery, except for cases of sudden geopolitical aggravations, for example, in the regions of the Middle East or Eastern Europe.
Resistance levels: 2620 – 2622, 2633
Support levels: 2606, 2590
Emphasis on 2622. If the bears keep the price below this zone, it is worth looking at local support levels, as a breakdown of these levels will only strengthen the fall to 2600-2560.
Regards R. Linda!
