At the beginning of this week, advances and pullbacks have been evident in the XAU/USD price. For now, the only clear thing is that if you are thinking of buying in the short term, it is very likely that resistance is located at the level of USD 2,000, and if there is a break through this resistance level, you may find support at the level of USD 1,980. Despite this, for now the price of XAU/USD continues to rise.
Given the wide range between these price levels, it is advisable to closely monitor XAU/USD movements to appropriately react to any changes. If the support level is breached, it could signal a reversal of the recent uptrend in the gold market, potentially leading to a bearish trend.
If XAU/USD breaks above the USD 2,075 level, it could confirm that the market is still in an uptrend.
Technical analysis of XAU/USD, today January 30
The metals market generally experiences volatility, generating opportunities for both call and put options. Volatility can affect prices in seconds, so it would be ideal to manage hedges against the possibility of downside risk.
Interest rate decisions by the Federal Reserve significantly impact XAU/USD prices, as lower rates typically boost gold prices due to the reduced opportunity cost of holding non-yielding assets like gold. The current geopolitical tensions should also be considered, as this could make the gold market an attractive investment for the year.
Generally, when geopolitical conflicts occur, gold prices tend to benefit. A rate cut by the Federal Reserve may cause the European Central Bank to adopt a more flexible stance, which could improve conditions for gold and other precious metals.
