Gold Price Analysis — December 7

7 December 2020 | Updated: 7 December 2020

Gold (XAU/USD) traded on a slightly bearish tone in the early European session on Monday, as it recorded a new three-day low over the past few hours. The precious metal was last spotted trading around the $1830 area at press time.

Gold is trading lower for the second consecutive session today, after retreating from a two-week high around $1849 on Friday following the release of a disappointing Nonfarm Payroll report. The follow-through selling got sponsored by a decent uptick in the US dollar (DXY), which tends to undermine demand for the dollar-denominated commodity.

However, a decent pullback in the equity markets today has limited any further decline in the yellow metal for the meantime. The global risk mood was dampened on Monday following news that the US was drafting some sanctions on about a dozen Chinese officials over their alleged role in the political turmoil in Hong Kong.

This announcement, coupled with expectations that US lawmakers will find a level footing on a new COVID-19 stimulus package and the selling pressure surrounding the US Treasury bond yields, extended extra support to the non-yielding commodity. That said, investors will be looking out for a sustained dip in gold before deciding that the recent bull rally has ended.

XAUUSD – Hourly Chart

Gold (XAU) Value Forecast — December 7

XAU/USD Major Bias: Sideways

Supply Levels: $1849, $1865, and $1876

Demand Levels: $1815, $1800, and $1792

Gold has recorded a significant slowdown in its recent bull run, prompting some caution for bulls. At press time, the commodity is locked in a battle with the $1830 price point as bulls and bears fight it out. That said, a sustained break below or above this line should determine the next directional bias for gold.

Nonetheless, we can see on our hourly chart that the commodity is currently in a consolidation range between $1845 and $1823.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.