Gold prices are flat due to the holiday season. They reached a high of $2,633 recently and are currently trading around $2,635.
For the week ending December 21, 2024, the number of people in the United States applying for unemployment benefits was reported at 219,000. This is a small drop from 220,000 the week before and is less than what experts expected, which was 224,000 claims.
However, the number of people still receiving unemployment benefits rose by 46,000 to 1.910 million, the highest it has been since November 2021. This suggests that while fewer people are applying for benefits right now, those who are unemployed are having a harder time finding new jobs and are staying unemployed for longer periods
Market Expectations for Interest Rates
According to the CME FedWatch Tool, the chance of the Federal Reserve pausing interest rate remains steady at 91.40%. This indicates changing expectations in the market.
Technical Analysis of Gold Prices
From a technical perspective, gold prices are currently below both short-term and long-term moving averages, suggesting a bearish trend. Immediate support is at $2,570, with potential declines to $2,559, $2,536, and $2,500. Resistance is at $2,635; if prices break through this level, they could rise to $2,660, $2,685, $2,700, $2,730, $2,750, and $2,775.
Suggested Trading Strategy
A good trading strategy is to buy on dips around $2,600, keep a stop-loss at $2,570, and aim for a target price of $2,725.
