- Gold price challenges six-month highs in a cautious start to 2023.
- US Dollar rebounds amid tepid sentiment as S&P 500 futures drop.
- Gold price awaits acceptance above $1,825 to validate an ascending triangle.
Gold price is challenging six-month highs while holding gains above the $1,825 key resistance level so far this Tuesday. Gold price is seeing a continuation of the recent uptrend at the start of 2023, despite the bounce in the US Dollar across the board.
Concerns over a potential global economic recession, China’s covid resurgence and higher inflation are weighing on the market sentiment, driving demand for the traditional safe-haven Gold price. Expectations that the US Federal Reserve (Fed) will continue its fight against raging inflation this year, by continuing its tightening cycle, keep investors’ sentiment broadly undermined.
The risk-off flows are also helping the US Dollar find a floor, capping the upside in the bright metal. Further, the US Treasury bond yields finished the final week of 2022 on an upbeat note, limiting the upside attempts in the non-yielding Gold price.
Attention now turns toward the first relevant US economic data due to be released this year, the S&P Global Manufacturing PMI for December, for fresh trading impetus. Markets will also closely await the Wall Street open for further cues on risk sentiment.
Gold price technical analysis: Daily chart
From a short-term technical perspective, Gold price is once again testing bearish commitments above the critical horizontal trendline (triangle) resistance at $1,825 this Tuesday.
Gold bulls need a daily closing above the horizontal trendline (triangle) resistance to confirm the ascending triangle breakout. Buyers will then aim for a fresh upswing toward the psychological $1,850 level. Ahead of that the $1,840 round figure could come into play.
The 14-day Relative Strength Index (RSI) is inching higher above the midline, backing the ongoing uptrend while the bullish crossovers continue to lend support to Gold bulls.
Alternatively, immediate support is seen at Friday’s low of $1,814. The next critical support awaits at the rising trendline (triangle support line) of $1,808. A breach of the latter could put the $1,800 threshold at risk, where the bullish 21-Daily Moving Average (DMA) hangs around.
Gold Price: Additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs above 1.1300 on renewed USD weakness
EUR/USD gains traction in the European session on Friday and trades above 1.1300. Growing concerns about the US fiscal outlook and government debt after the US House of Representatives passed President Trump's tax bill weigh on the US Dollar and help the pair push higher.
GBP/USD rises to 1.3450 area, closes in on multi-year high
GBP/USD benefits from the selling pressure surrounding the US Dollar and rises to the 1.3450 area in the European session on Friday. The data from the UK showed that Retail Sales rose by 1.2% in April, surpassing the market expectation of 0.2% and supporting Pound Sterling.
Gold bulls have the upper hand amid safe-haven buying, weaker USD
Gold price attracts some dip-buyers following the previous day's pullback from a two-week high and trades above the $3,300 round figure during the Asian session on Friday. Moreover, the fundamental backdrop suggests that the path of least resistance for the precious metal remains to the upside and supports prospects for an extension of over a one-week-old uptrend.
Avalanche Price Forecast: AVAX eyes $30 as FIFA, VanEck back blockchain ecosystem
Avalanche (AVAX) is gaining bullish momentum, extending gains on Friday, trading at $25.74 as investor confidence grows on the back of two major developments. FIFA, football’s global governing body, has announced plans to build its own Layer-1 blockchain on the Avalanche network.
FOMO vs fundamentals: Retail buys the dip, institutional investors stay cautious
Retail optimism is rising, but institutions are still treading carefully amid lingering macro and earnings risks. Policy and fiscal uncertainty remain elevated, with trade tensions, U.S. debt concerns, and a cautious Fed dominating the backdrop.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.