- Gold price struggle for clear directions amid holiday mood.
- US Dollar Index rebounds amid risk-negative headlines surrounding China, pre-data caution.
- Fed Minutes, US NFP will be crucial as XAU/USD struggles around key resistance.
Gold price (XAU/USD) remains sidelined as holidays in major markets restrict the precious metal’s moves during early Monday. Also acting as an upside filter is the US Dollar’s rebound amid escalating fears from China, as well as headlines suggesting the US growth optimism, backed by comments from the International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva. Even so, the recently softer US data, mainly surrounding inflation and activities, join an absence of the hawkish Fedspeak to keep Gold buyers hopeful.
That said, Gold traders may witness inaction during the rest of the day but the current week holds multiple key catalysts and hence become warrants caution. Among them, this week’s activity data from the US, Minutes of the latest Federal Open Market Committee (FOMC) meeting and December month employment numbers are crucial for clear directions.
Also read: Gold Price Annual Forecast: Will 2023 be the year Gold shines?
Gold Price: Key levels to watch
The Technical Confluence Detector shows that the Gold price grinds higher towards the $1,835 key hurdle comprising the previous weekly and monthly high, as well as the Pivot Point one-day R2.
Following that, a run-up towards June 2022 peak surrounding $1,880 can’t be ruled out.
Alternatively, pullback moves remain elusive beyond the $1,819 level that includes Fibonacci 61.8% on one-day and SMA10 on 4H.
In a case where the Gold price drops below $1,819, a convergence of the 200-HMA and Pivot Point one-day S2, around $1,808, will be crucial to watch.
Should the Gold bears keep the reins past $1,808, the odds of witnessing a slump toward the $1,800 threshold can’t be ruled out.
Here is how it looks on the tool
About Technical Confluences Detector
The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position
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 flirts with 1.0500 on mixed US PMI readings
The bullish momentum remains unchanged around EUR/USD on Friday as the pair keeps its trade close to the area of multi-week highs around the 1.0500 barrier in the wake of the release of mixed results from the preliminary US Manufacturing and Services PMIs for the current month.
GBP/USD challenges recent peaks near 1.2450
GBP/USD pushes harder and puts the area of recent two-week highs near 1.2450 to the test on the back of the intense sell-off in the Greenback, while the British pound also derives extra strength from earluer auspicious prints from advanced UK Manufacturing and Services PMIs.
Gold keeps the bid bias near its all-time high
Gold prices maintain the bid tone near their record top at the end of the week, helped by the intense weakness around the US Dollar, alleviating concerns surrounding Trump's tariff narrarive, and a somewhat more flexible stance towards China.
Dogelon Mars pumps more than 85%, whales dump 128 billion coins and realize a profit
Dogelon Mars (ELON) price continues its rally on Friday after rallying more than 18% this week. On-chain data shows that ELON whale wallets realized profits during the recent surge. The technical outlook suggests a rally continuation of the dog-theme meme coin, targeting double-digit gains ahead.
ECB and US Fed not yet at finish line
Capital market participants are expecting a series of interest rate cuts this year in both the Eurozone and the US, with two interest rate cuts of 25 basis points each by the US Federal Reserve and four by the European Central Bank (ECB).
Trusted Broker Reviews for Smarter Trading
VERIFIED Discover in-depth reviews of reliable brokers. Compare features like spreads, leverage, and platforms. Find the perfect fit for your trading style, from CFDs to Forex pairs like EUR/USD and Gold.