Gold prices have shown limited movement at the start of European trading on Friday (December 20, 2024), indicating no significant changes in the critical technical levels to monitor.
On the hourly chart, the price of Gold is currently trading below a trendline established since December 12. As long as it stays beneath this trendline, there is potential for further declines in Gold’s value.
The $2,620 per troy ounce mark acts as a strong resistance level. Historically, this range has served as support that has halted Gold’s price drops. Since it was breached last Wednesday, Gold has struggled to reclaim that level, turning it into a strong resistance point.
The Stochastic indicator is trending downward after reaching the overbought territory, enhancing the likelihood of a price decline.
On the 15-minute chart, the Stochastic is on an upward trend and is entering overbought territory. If Gold rises on this timeframe, it could present a better risk-reward selling opportunity. When the Stochastic remains in the overbought zone for a prolonged period on the 15-minute timeframe, there is potential for the price to reverse downward, especially as the longer timeframe still indicates a downtrend.
As long as Gold remains below $2,620, there is a possibility it could drop to around $2,588. If this level is broken, Gold may further decline to $2,580.
Technical Reference: Sell while below $2,620
Potential Take Profit 1: $2,588
Potential Take Profit 2: $2,580
Potential Stop Loss 1: $2,620
Potential Stop Loss 2: $2,629
