Chart of the day

Where do we stand fundamentally?

As of November 28, 2024, gold prices (XAU/USD) are experiencing downward pressure, trading below $2,640 per ounce. This decline is attributed to a resurgence in U.S. dollar demand, which diminishes gold's appeal as a safe-haven asset. Additionally, reduced geopolitical tensions have lessened the immediate need for gold as a protective investment.

Analysts suggest that the combination of a strengthening dollar and a decrease in geopolitical uncertainties has created a bearish outlook for gold in the short term. The U.S. dollar's recent gains have made dollar-denominated assets, including gold, less attractive to investors.

XAUUSD is reaching the peak of a third wave upside Elliott Wave of the third long-term upside wave. A break below 2640 will open a strong downside reversal in the fourth long-term wave before a possible continuation in the fifth wave. Looking for a pullback to 2300 at least in this fourth wave pullback.

We are in the development of the fourth wave lower medium-term and it will be invalidated only upon a break above 2730. A break below 2640 will lead to an acceleration lower and the first support is 2400.

_{Try a short trade entry with a stop loss above 2680 to target 2400 and lower upon a break below 2680. You can trade it with put options as well.}

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