Gold Price Analysis: XAU/USD jumps to near two-week tops, around $1863-64 supply zone
Gold reversed a knee-jerk fall witnessed during the early North American session and shot to two-week tops, around the $1863-64 region in the last hour.
The precious metal attracted some dip-buying near the $1832 region and is now looking to build on this week's goodish rebound from the vicinity of the $1800 mark, or eight-week lows touched on Monday. The strong move up over the past hour or so lacked any obvious catalyst and runs the risk of fizzling out rather quickly.
Here’s why gold recently moved up
Gold moved higher as the USD Index moved lower in today's pre-market trading. Before providing you with my thoughts on why that happened and what the implications are, let's see exactly what transpired.
In yesterday's (Jan. 19) analysis , I commented on the above USD Index chart in the following way:
The USD Index is after a major breakout above the declining resistance lines and this breakout was confirmed. Consequently, the USD Index is likely to rally, but is it likely to rally shortly? The answer to this question is being clarified at the moment of writing these words, because the USD Index moved back to its rising short-term support line that's based on the 2021 bottoms.
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