GOLD → It's a stalemate. The market can grow

12 Jan 2024

XAUUSD reaches our target, but after a false breakdown of support 2016, the market quickly buys back all the fall. Now the price is heading towards a strong resistance



The most interesting thing is that three times in a row the US market received fundamentally bullish news. The DXY has been in the same place for 10 days now and cannot pass through resistance, which speaks volumes about the state of the index and the mood of the market. The market is overheated and in all likelihood the index is preparing for a decline. Gold is not so eager to react to bearish news and at any opportunity the market tries to buy back the fall.
At the moment the price of gold is heading to the resistance of the ascending channel, from here two scenarios can develop:

• 1) False breakout may lead to a pullback, within which the price may break through 2031.8. Consolidation below this level will continue the correction phase and within the descending channel the price may head towards 2016
  

• 2) False breakout will form a small correction to 2030-2031. But, the fundamental background will play its role and the price will start forging resistance retests for a breakout. Breakout of downside resistance and 2038.9 level is a signal and price consolidation above these areas will be confirmation
  

Support levels: 2031.8, 2025
Resistance levels: MA-200, 2038.9

I think that the chance is higher towards the resistance breakout than towards further decline. We follow the price reaction beyond the mentioned zone and wait for confirmation of one or another scenario to open trades

Regards R. Linda!

12 Jan 2024

Nota

Another fundamental crisis that is bullish for gold.

The U.S. and Great Britain, jointly conducting an operation against the Houthis in Yemen.