Daily Technical Analysis on XAU/USD: Prices continue to trend upwards


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At the beginning of the week, the price of gold (XAU/USD) rose and stabilized at the resistance level of USD 2,037 per ounce at the time of writing.

Interest rate markets in the U.S. market continue to give the likely view that there could be a near 50% interest rate cut by the Federal Reserve (Fed) in March, which will also help discount 130 basis points of rate cuts for this 2024, and that, likely, expectations are still being evaluated as to what could happen in the market.

It’s a critical week ahead of the Fed meeting for U.S. Gross Domestic Product (GDP) and Personal Consumption Expenditures (PCE).

U.S. market attention will be focused on this Thursday due to the GDP release and the Personal Consumption Expenditure measure. Moreover, the December U.S. personal consumption expenditures reading is the last piece of relevant information ahead of the Federal Reserve’s monetary policy meeting set for January 31, so it could pique investors’ and markets’ attention.

Investors and markets will also be on the lookout for any surprises, as the latest producer price index data showed weak numbers as a result of the cost of living, the main driver of the core consumer price index.

Technical analysis of the gold price today, January 23:

Looking at the daily behavior on the chart, the trend will continue upwards, which may generate buying opportunities for those interested.

As for support levels, the price of gold (XAU/USD) may touch USD 2018 and USD 2000 in that order. As for resistance levels, they can be approached between USD 2055 and USD 2070.

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