Gold "Lulls" After the Holiday Break
Currently, the price of gold is fluctuating around $2,625 per ounce. The gold market is showing signs of lull following the holiday break, with no significant breakthroughs observed. Last week, gold came under strong pressure due to expectations surrounding the Federal Reserve's (Fed) interest rate policy. Inflation remains high, raising concerns that the Fed may slow down the pace of interest rate cuts in the coming year. This not only creates uncertainty in the global economy but also strengthens the US dollar, thereby diminishing gold's appeal as a safe-haven asset.
Looking at the technical chart, while I expect the support level at $2,610 to help gold maintain a stable trend in the short term, the outlook for strong growth in gold seems limited. In fact, gold may face two key resistance levels at $2,626 and $2,620. These resistance levels will create significant barriers, making it difficult for gold to break through and continue rising sharply.
With both fundamental and technical factors at play, the likelihood is that gold will fluctuate within a narrow range over the next few days, and may experience a slight decline if it fails to break through the resistance levels mentioned. However, if the $2,610 support holds, gold could remain stable, with no significant decline expected in the short term.
Looking at the technical chart, while I expect the support level at $2,610 to help gold maintain a stable trend in the short term, the outlook for strong growth in gold seems limited. In fact, gold may face two key resistance levels at $2,626 and $2,620. These resistance levels will create significant barriers, making it difficult for gold to break through and continue rising sharply.
With both fundamental and technical factors at play, the likelihood is that gold will fluctuate within a narrow range over the next few days, and may experience a slight decline if it fails to break through the resistance levels mentioned. However, if the $2,610 support holds, gold could remain stable, with no significant decline expected in the short term.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.