Global Gold Analysis (XAUUSD)

A review of gold movements

As mentioned in the gold symbol analysis last week, gold entered the  $1,900 resistance level, and it had to stabilize above this number to rise. We also mentioned that fundamentally, gold's ascending or descending movement depended on the inflation rate data, which resulted in gold's ascending trend.
Also, we mentioned that in the 4-hour and lower timeframes, one should look for a sell position more, and in last week's mentioned resistance levels, gold showed a good descending reaction..

Last week the emphasized point was that gold needed confirmations such as breaking the supports and trend line to turn the descending reaction into a retracement, which such confirmation did not happen, and gold continued its climb beautifully by stabilizing above the 1900 resistance level.

Further, we will review gold's technical, fundamental, and sentiment aspects.

Gold Technical analysis  

By reviewing the daily chart of gold, we can see that with the breaking of the ascending corner which was mentioned three weeks ago, the gold's strength increased, and it is reaching the important daily resistance levels. Gold's closest resistance level is in the approximate range of 1950 to 1960, which can have price reactions in lower times. If this range is broken, gold will reach its most important approximate 1980 to 2000 resistance level.

However, as gold approaches its resistance level with the candlesticks that have been formed, we can see that its ascent energy is slowing down, also the overbuy can be seen in the RSI indicator by recording a number above 70, and we can see this slowing down in gold's lower timeframes. Therefore, gold probably needs to retracement and rest to ascend further.

We can see this slowing down in the daily timeframe, more clearly in the 4-hour timeframe if we observe that the ceilings formed by gold marked with colored circles are not far apart and every time the previous ceiling breaks, it creates a new ceiling in a short distance and has shown a good descending reaction again. This shows gold's lack of ascending power considering that it has approached the daily resistance level.

On the other hand, in Rsi, we can see that gold is unable to create higher peaks, which is proof of instability in ascending.

Gold is also in a corner where the failure of either side can determine the gold's path for the short term. Technically, gold needs to break the corner from above and break the 1960 level in the daily timeframe. In this case, gold can reach the 1980 level. However, breaking the corner trend line from below is necessary to convert these descending reactions into a retracement. If such a break occurs from below, it is possible to consider it as gold's first support in the 1905 to 1900 level.

Gold fundamental analysis

From the fundamental pov, gold depends more on the fundamental condition of the US dollar, and it has a negative correlation with the USD currency. For the dollar, on Thursday, January 26, important news will release at 01:30 pm, and the result of this news and data can affect gold's short-term path.

But for gold's mid-term path, all eyes are on the Federal Reserve's interest rate meeting next week. This meeting can determine the dollar's path and symbols related to gold. We will review this meeting and the weekly fundamental news in the weekly analysis next week, which you can read on our website.

Please note that at the moment of this news release, due to the high importance of those symbols related to the dollar, including gold, there are high fluctuations, and trading and capital management are important at the time of the news release.

Gold sentiment analysis

Because of gold's approach to the important 1950 resistance level and the lack of stability in the ascent due to the reasons mentioned in the technical analysis, one can look for a sell position in gold's four-hour and one-hour timeframes according to one's strategy, and profit from the descending reactions. To buy gold, you can buy within the mentioned support levels.