The dynamics of the gold market have been heavy under the weight of both technical resistance and the prevailing strength of the U.S. dollar recentlyStarting from its opening, gold has faced opposition from the mid-band resistance and the 30-day moving averageNotably, the resilience of the dollar index, which has seen a recovery extending from overnight trading sessions, has added further pressure on gold pricesIt is evident that for a sustained bearish outlook on gold to materialize, it must decisively break below the 100-day moving average support level.

On the daily charts, the dollar index has encountered some retracement, yet it remains firmly within an upward trendThis bullish outlook is corroborated by its positioning above the 5-10 week moving averages on the weekly charts, indicating a sustained strengthThe monthly charts reflect a similar bullish sentiment, with the Bollinger Bands indicating an initial expansion, suggesting that market conditions are not yet exhaustedAdditionally, indicators on the charts have begun to signal bullish momentum, indicating room for prices to ascend further, thereby exerting downward pressure on gold.

The bond market, particularly the 10-year U.STreasury yield, has adjusted since touching mid-band support, showing signs of stabilization and an increase in strengthThe Bollinger Bands have adjusted upward, confirming an increase in bullish forces, with expectations that this upward trend might continueThis correlation of rising yields with the dollar is expected to have a cumulative bearish impact on gold prices.

However, despite the adverse effects posed by both the dollar and bond yields, gold has not reacted with continuous declinesInstead, it is navigating through a phase of consolidationOn one hand, the dollar's strength is not a direct consequence of conclusive economic data or persistent interest rate hikes; hence, it cannot be solely seen as a bearish force against gold – it primarily limits the bullish momentum that gold can generate

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On the other hand, gold maintains certain bullish perspectives and justifications for a potential upward trajectoryThis reflective phase of adjustment indicates uncertainty in gold's future movements as it continues to assess the market's broader direction.

Prominent financial analyst Zhang Yao-xi highlighted key events to monitor in the context of the U.S. economy, pointing to data releases such as the U.S. trade balance for November, the global supply chain pressure index for December, the ISM non-manufacturing PMI for December, and the JOLTs job openings report for NovemberBased on yesterday's economic indicators, there is a high probability that the evening's data will further support gold pricesHowever, with market participants on high alert ahead of forthcoming non-farm payroll data due this Friday, price volatility is expected to remain limited, leading to continued phases of consolidation in gold trading activities.

On the daily chart, gold prices encountered resistance at the 60-day moving average last week and failed to break throughThe ZZ indicator reflects a topping formation, once again favoring bearish positions, especially as this week began with a dip below the 100-day moving average supportAlthough it has not firmly established below this level, the potential remains for further weakening until it can stabilize above the 60-day moving average resistanceThus, short-term trading strategies should anticipate oscillations between bullish and bearish positions.

In terms of price levels to watch: for gold, the immediate support lies near $2627 or $2617, while resistance can be observed around $2643 or $2658. For silver, support levels to pay attention to are $29.85 or $29.65, with resistance marked at $30.30 or $30.60.

Turning to oil, WTI crude saw a rebound before retreating and closing lower amid market anticipation for crucial economic releases such as the upcoming U.S. non-farm payroll reportThe interplay of negative economic cues from both the U.S. and Germany has offset the impact of a weaker dollar, as well as forecasts suggesting increased demand for heating fuels due to winter storms

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