Dollar Strength Takes Gold Marginally Lower Today As The Year-end Holiday Season Begins

Gary S.Wagner
Published: Nov 22, 2023, 22:19 GMT+00:00

Today’s decline of approximately seven dollars is the largest single-day drop since gold hit a low of $1955 on Monday, November 13.

Gold bullion, FX Empire

In this article:

Gold Sees Marginal Dip Amid Dollar’s Uptick: Insights & Thanksgiving Schedule

Gold basis the most active February 2024 contract settled down $8.60 in New York at $2013.20. As of 3:05 PM EST, February gold is currently trading at approximately the same value fixed at $2013.70 down $6.80 or 0.34%. This occurred after yesterday’s extremely strong gain of just over $20 per ounce closing at approximately $2020 after reaching an intraday high of $2030.

Today’s decline of approximately seven dollars is the largest single-day drop since gold hit a low of $1955 on Monday, November 13.

Today’s price decline can be directly attributed to marginal strength in the dollar. Currently, the dollar is up 36 points or +0.34% and fixed at 103.805. This clearly illustrates that dollar strength is up the same percentage as gold futures are down.

While trading will continue in Globex this evening in Australia, Hong Kong, and London it will close in observance of Thanksgiving on Thursday and Friday. Trading will resume in Australia on Monday, November 27, or Sunday on the mainland.

Gold still has upward momentum which is the result of a combination of factors that we spoke about in detail yesterday. Those being expectations that the Federal Reserve might have concluded raising interest rates. The geopolitical landscape still contains an excessive amount of uncertainty and risk due to the war in the Middle East and Ukraine.

Gold’s Resistance Levels: Analysis & Forecast

Our technical studies indicate that should gold continue to move higher the first level of resistance occurs at approximately $2040. This is based on a double top in which the first occurrence was on Thursday, June 1 and the second instance occurred on Friday, October 27. On both occasions, gold traded to $2040 before entering a shallow correction. The next level of technical resistance occurs at approximately $2080 based upon a top that occurred on Thursday, April 13 which we are labeling as the first level of major resistance. The second level of major resistance occurs at approximately $2100, the high of February gold that occurred on May 3.

Thanksgiving Wishes: Gratitude for Readers Near and Far

Tomorrow marks the first day of this year’s holiday season with Thanksgiving being celebrated in the United States and Canada. With all the turmoil that we have witnessed this year, I want to wish all of our readers in Canada and the United States a Happy Thanksgiving. To all of our readers globally I want to extend my thanks for your support this year in trusting the daily commentary that I provide.

For those who would like more information simply use this link.

Wishing you as always good trading,

Gary S. Wagner

About the Author

Gary S.Wagnercontributor

Gary S. Wagner has been a technical market analyst for 35 years. A frequent contributor to STOCKS & COMMODITIES Magazine, he has also written for Futures Magazine as well as Barron’s. He is the executive producer of "The Gold Forecast," a daily video newsletter. He writes a daily column “Hawaii 6.0” for Kitco News

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