Gold prices are holding steady, trading just 5% below the record high, with the December range taking shape above key uptrend support. The XAU/USD technical outlook highlights the potential for a broader correction while the long-term trend remains intact.

Gold Weekly Technical Analysis: Key Levels

• Resistance Levels: 2736 (critical), 2804, 2900
• Support Levels: 2607, 2532, 2450-2482 (critical zone)

Gold’s price action reflects a tight trading range, staying above multi-year slope support into the December opening. While the broader uptrend remains constructive, the threat of a deeper correction looms if resistance levels near the record high are not breached.

Recent Performance and Technical Outlook

Last month, gold saw a sharp rebound of 7.3% off trend support but ended the month with a 4.3% pullback. The decline found support at the 61.8% Fibonacci retracement level of the November rally at 2607, where prices stabilized. This zone remains pivotal for short-term price action.

• Immediate Resistance: The record high weekly close at 2736 is a key threshold. A break above this level would signal a resumption of the uptrend, targeting higher resistance levels at 2804 and potentially the 2900 level.
• Immediate Support: The 2607 level is crucial. A break below this point would indicate the start of a more significant correction, with targets at 2532 and the 2450-2482 zone.

For the broader 2022 uptrend to hold, price declines should remain above the 2450-2482 range, defined by the April high and the 38.2% retracement of the 2024 yearly range. A breach below the 52-week moving average (currently near 2361) would suggest a larger trend reversal and give bears control.

Trading Strategy

Gold is at a critical juncture, trading within a tight range between 2607 and 2736. The immediate focus is on a breakout of this range to provide directional clarity. While the long-term trend remains bullish, near-term price action may be volatile, especially with key economic data releases, including Friday’s U.S. non-farm payrolls report.

Traders should stay cautious and watch for a weekly close above or below the current range for stronger signals. The broader uptrend remains intact, but any weakness below support levels could challenge the bullish outlook.

Bottom Line

Gold prices are navigating a pivotal range early in December, with the broader uptrend still in play but vulnerable to correction. The market awaits key data for further guidance, making it crucial for traders to monitor levels at 2607 and 2736 closely.

For further insights, review our Gold Short-Term Outlook for updated technical levels and near-term strategies.