The XAUUSD pair has been riding a bullish trend over recent months, with gold prices hitting all-time highs in September 2024 near $2,635 per ounce. Currently, the pair remains above the 50- and 200-period moving averages, reinforcing the continuation of the upward trajectory.
Key Support and Resistance Levels:
Support: $2,657: Now acting as a key level after previously serving as strong resistance during pullbacks. $2,621: A previously identified support zone during price corrections.
Resistance: $2,723: A significant resistance zone, historically alternating as support and resistance since October 2024. $2,750: Found at the lower boundary of the premium zone but would require a break of the descending trendline and the resistance above.
Technical Patterns and Indicators:
Candlestick Patterns: Recent bullish candlestick formations like "marubozu" and "bullish engulfing" indicate strong buying pressure.
RSI (Relative Strength Index): The daily RSI is hovering near the overbought zone (above 59), signaling potential for pullbacks or consolidation.
SMC (Smart Money Concepts) and Wyckoff: The current structure aligns with an accumulation phase, suggesting a high probability of a subsequent bullish breakout, consistent with Wyckoff principles.
Key Fundamental Drivers:
US Monetary Policy: The Federal Reserve's recent half-point rate cut has added upward momentum to gold prices.
Geopolitical Tensions: Ongoing conflicts in the Middle East and other regions are boosting demand for safe-haven assets like gold.
Economic Data: Upcoming US economic reports, including Q4 GDP and the PCE Price Index, could sway market sentiment and drive volatility.
Jan 14 - 1:30 pm GMT 0 - Producer Price Index (PPI): USPPIMM Jan 15 - 1:30 pm GTM 0 - Consumer Price Index (CPI): USIRMMUSIRYY Jan 16 - 1:30 pm GMT 0 - Retail Sales USRSMM and Unemployment Claims $USIJC
Potential Scenarios:
Bullish Scenario: If XAU/USD breaks above the descending trendline at $2,688, the price could target the $2,723 zone and, with enough momentum, push towards $2,750.
Bearish Scenario: In the event of corrections, the pair may find support at $2,657, or in the case of a deeper pullback, near the base of the expansion channel at approximately $2,621.
Seasonal Considerations: Historically, the start of the year tends to be favorable for gold due to increased demand for safe-haven assets and portfolio rebalancing by institutional investors.