Gold touches triple top resistance of $2080 again

By Dr. Renisha Chainani, Head- Research, Augmont – Gold for all

Gold December contract closed at record high prices in Indian and International markets above Rs 63300 and $2070 respectively this week. February contract of gold has already touched a new high of $2095 and closed at $2089. Now, the million-dollar question is, will prices sustain above this resistance level or fall back again?

Triple Top Formation on Gold Weekly Chart

The gold market is seeing renewed buying momentum and has closed at crucial Triple-top resistance. These levels are very crucial resistance levels as prices have touched these levels thrice before and turned back. If prices sustain above $2080 (Rs 63000) this time, we are going to see a big rally up to $2250 (Rs 68000) as per technical targets.

The following fundamental factors will support the bullish rally for gold to achieve these levels soon

  • De- dollarisation
  • Geopolitical Tensions in the Middle East
  • Rising probability of Recession in 2024
  • Change of FED monetary stance from Hawkish to Dovish
  • Strong Investment and Retail Demand
  • Big funds, still being under-allocated in Gold

But one should be cautious now, as gold prices have run up very fast in the last two months. And December is seasonally considered to be a profit-booking month for Gold by large fund houses. New allocation and portfolio diversification will start in January. So, we could see some retracement and profit booking in prices up to $2000 this month. But once the rally gets steam again, all fundamentals and technical factors would come into play and will the prices to a new target of $2250 (Rs 68000) in the next few months.



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