Early in the last December week, Gold prices continue consolidating. At the moment, the precious metal is trading at 1485.00 USD; it may reach 1488.00/1490.00, but hardly any higher.
At the end of the year, global investors’ demand for “safe haven” assets is quite moderate even assuming that the USA may introduce new sanctions against Russia and its project very quickly. In addition to that, still, no new information relating to signing on the first phase of the US-China trade agreement and, most likely, there won’t be any until New Year. This prevents market players from being more positive.
On a thin pre-Christmas and pre-New Year market, interest for Gold may revive a little bit, but if you want to see some particular direction, it’s better to wait for 2020.
Gold on charts
As we can see in the H4 chart, after forming the consolidation range around 1477.33 and expanding it towards 1484.33, XAU/USD is expected to return to 1477.33 to test it from above. If later, the price breaks this range to the downside, the market may start another decline to reach 1468.28; if to the upside – resume growing with the target at 1486.60. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving directly upwards above 0, thus implying a further growth.
In the H1 chart, XAU/USD has reached the target of the fie-wave ascending structure and may start a new correction to the downside to reach 1477.33. The first downside target is at 1480.30. After that, the instrument may consolidate for a while and break this range downwards to continue the correction. From the technical point of view, this scenario is confirmed by Stochastic Oscillator: its signal line is moving above 80, thus indicating that the price is finishing its decline. If the indicator breaks 80 to the downside, it will continue falling towards 50.