- Gold extends losses below $4.150 with the US Dollar supported amid higher risk aversion.
- Dwindling hopes of a December Fed cut are weighing on precious metals on Friday.
- XAU/USD is under growing bearish pressure, approaching an important support level at $4,100.
Gold (XAU/USD) is heading lower on a choppy trading session on Friday, weighed by a firmer US Dollar amid the risk-averse sentiment. The Precious metal has broken below a previous resistance area, at $4,150 ahead of the US session opening, reaching intraday lows near $4,130 so far.
Furthermore
The Greenback is trimming some losses on Friday as market sentiment soured with European equity markets in the red, following the track of Wall Street and Asia. Furthermore, the hawkish comments from Fed officials have prompted investors to pare back hopes of Fed easing in December, which has provided some support to the US Dollar.
Technical Analysis: Bears eye the $4,100 support level
From a technical perspective, the lower high printed earlier on Thursday, coupled with the dip on the 4-hour Relative Strength Index (RSI), which is flirting with the 50 level at the time of writing, and the bearish cross on the Moving Average Convergence Divergence (MACD), is acting as a warning for buyers.
Below $4,150 (November 11 high, Thursday’s low), the next support level is at the $4,100 area, where the November 11,12 lows meet the trendline support from early November lows. Further down, a previous resistance area at $4,050 (October 31 highs) will come into focus.
Immediate resistance is at the daily high of $4,210, ahead of Thursday’s high, near $4,245. Bulls would need to break above these levels to resume the upside trend and shift their views towards the all-time highs around $4,380 (the highs of October 20 and 21).
