GOLD strategy beginning of the week January 13 Continued uptrendSafe Haven Demand for Gold Surges Amid High Inflation and Upcoming Tax Policies Under Trump Administration
Gold prices in the domestic market closed the week at their highest level in a month.
A report from the U.S. Department of Labor showed that non-farm payrolls in December increased by 256,000, far exceeding the November figure of 227,000. The strong job data caused an unexpected reaction in the commodities market.
This has raised the probability of the Federal Reserve (Fed) not cutting interest rates in January to 97.3%. Meanwhile, 74% of analysts believe that the Fed will maintain its current interest rates until the FOMC meeting in March.
Donald Trump will be inaugurated as U.S. President on January 20. Markets are paying close attention to the Trump administration’s policies, particularly regarding tariffs and their inflationary impact, as well as concerns over rising fiscal debt.
In such a scenario, gold is seen as an inflation hedge, potentially pushing its price higher. Analysts at Saxo Bank suggest that these factors have driven increased physical gold accumulation in China.
Gold has also seen significant gains against the British pound, as the U.K. faces a new bond market crisis. U.K. bond yields have surged due to concerns that the government will struggle to control the deficit amid rising spending costs.
While higher interest rates are typically bad news for gold, uncertainty around tariffs continues to drive safe-haven demand. Since the beginning of the year, gold prices have risen nearly 3%. Looking at the charts, the price trend is turning bullish, with the next key resistance level at $2,715 per ounce.
Bank of America and JPMorgan predict gold bullion will reach $3,000 per ounce by year-end, while UBS forecasts a price of $2,900 per ounce.
Market Update and Technical Analysis
Here’s a quick update on the current market situation. As mentioned, scenarios still favor gold’s upward momentum, despite positive U.S. data indicators. With upcoming events, investor sentiment remains inclined toward gold as a safe haven. The key psychological level is at $2,720; if this level is broken, the previous peak will likely be revisited quickly, leading to the creation of a new all-time high. However, initially, the market may test $2,720, followed by a correction phase to gather liquidity and momentum for reaching higher levels.
From a technical analysis perspective, the bullish trend remains stable, supported by fundamental analysis factors. Therefore, continuing to buy is recommended, with a target at $2,720.
BUY ZONE: 2678 - 2676
SL: 2672
TP: 2684 - 2688 - 2694 - 2700 - ???
SELL SCALP: 2702 - 2704
SL: 2708
TP: 2698 - 2694 - 2690 - 2686
SELL ZONE: 2716 - 2719
SL: 2723
TP: 2712 - 2710 - 2697 - 2694
Note: Key resistance zones are already highlighted in daily and weekly plans. Exercise caution early Monday as price ranges are still forming. Adhere strictly to TP/SL for every trade signal to safeguard your account.
