Technical Analysis of the Gold Price

EnclaveFX Ltd
Feb 01, 2023

A convincing break below the $1,900 level might trigger some technical selling, exposing the $1,880-$1,877 support. From a technical perspective, the $1,900 level appears to be immediate strong support. Eventually, gold prices are likely to fall to the next relevant support near the $1,856-$1,855 region, which if sustained decisively would shift the near-term bias towards bearish traders.

On the flip side, any meaningful upside will likely encounter some resistance near the multi-month top, around the $1,949 region touched on January 26. A sustained strength beyond has the potential to lift the Gold price to the $1,969-$1,970 region. A further extension of the momentum could allow the XAU/USD to surpass an intermediate hurdle near the $1,980 region, leading to the bulls reclaiming the psychological mark of $2,000 for the first time since March 2022.


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