Dec 24, 2021 00:32AM ET
By: AnalysisWatch
Gold prices (XAU/USD) hit fresh weekly highs before settling around the $1,810 mark as market participants looked to the West for fresh clues over the Christmas holidays.
Buyers of the yellow metal initially cheered the optimism surrounding the South African COVID variant, dubbed Omicron, as well as the "Build Back Better" (BBB) announced by US President Joe Biden. Gold buyers were also challenged by pessimism about China-US relations and doubts about the recently approved COVID pills, as well as the fact that US Senator Joe Manchin has completely abandoned negotiations on the current version of the Build Back Better Act.
Given the cautious optimism in the market, the gold bulls have the upper hand, but the bears are lurking for new clues to step in. Therefore, gold price movements are likely to be limited in the final days of 2021, in the absence of important data.
The Technical Confluences Detector shows that gold has already cleared the important hurdles at $1,804 and $1,809, but has yet to break above the weekly high at $1,814.
However, recent advances are targeting the $1,814 level, which includes the upper Bollinger Band on the four-hour line, the previous weekly high and the R1 pivot point on a daily basis.
Following this, a rise in the metal towards the $1,823 level, including the R1 pivot point on a weekly basis, cannot be ruled out. However, any further rise will be challenged by the $1,834 level, encompassing the 61.8% Fibo on a monthly basis, as well as the highs marked in July and September.
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