Technical analysis update: Gold (24th January 2022)

Gold continues to trade slightly above the key technical level at 1835 USD. We continue to maintain a bullish view on XAUUSD. However, we would like to voice a word of caution as there is a FOMC meeting this week which may present itself with increased volatility in precious metals. Investors will get more clues on upcoming rate hikes and economic tightening which poses threat to the general stock market and cryptocurrencies. However, in turn, we think this is a positive catalyst for the price of gold. There is a very high likelihood of capital getting out of the cryptocurrency sector which is being hammered down by a strong downtrend (and which we predicted already in November 2021). We previously noted that this would cause rotation out of cryptocurrencies into more conservative assets like precious metals. We continue to maintain this same notion even today. Our short-term price target stays at 1850 USD while our medium-term price target is 1875 USD.

Illustration 1.01

Picture above shows the daily chart of XAUUSD with volume indicated by green and red bars below it. Preferably we would like to see further increase in volume which would further boost the bullish case for gold.

Technical analysis - daily time frame
RSI, MACD and Stochastic are all bullish. DM+ and DM- are bullish too. ADX continues to increase which suggests that the bullish trend has resumed. Overall, the daily time frame is bullish.

Technical analysis - weekly time frame
MACD, RSI and Stochastic are all bullish, similarly like on the daily time frame. Same applies to DM+ and DM-. ADX continues to undergo reset. Overall, the weekly time frame is bullish.

Support and resistance
Neutral zone appears between 1750 USD and 1835 USD which currently act as two very important supports. Closest resistance lies at 1877.14 USD. Another resistance above that is at 1916.615 USD. Major resistance lies at 2075.282 USD.

Please feel free to express your own ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.

İşlem kapandı: hedefe ulaştı:

Short-term price target of 1850 USD has been reached. We would like to change our medium-term price target of 1875 USD to short-term.

İşlem aktif:

Gold drops after the FOMC statement release. However, it continues to trade within the upward moving channgel. Until lower bound is penetrated to the downside we stay bullish.

İşlem aktif:

XAUUSD breaks below the upward moving channel which forces us to abandon price target of 1875 USD. Technicals on the daily time frame turned bearish.

İşlem elle kapatılmış