Australia’s private sector credit rose by 0.8 percent month on month in December, compared to the expected 0.5 percent and the 0.9 percent of the previous month, boosting market optimism. Furthermore, recent upbeat inflation and jobs reports are keeping the RBA hawks hopeful. According to ANZ, “the (RBA) forecast for growth in wages is likely to point to a rate hike in the first half of 2023, as its central case, but in his statement on Tuesday and/or his speech the following day, Lowe is expected to admit, for the first time, that a move is possible in 2022 if the growth in wages comes through faster than forecast.”

Furthermore, the release of the Advance US GDP report, which revealed that the world’s largest economy grew at an annualised rate of 6.9% during the fourth quarter, boosted the market trading sentiment. Overall, the GDP grew by 5.8% in 2021, which was the fastest rate in nearly four decades. The upbeat market sentiment was considered a crucial reason for the drop in the price of safe-haven gold.

On the technical side, the precious metal, gold, is gaining support at 1,786. Currently, it is trading at 1,788, with a bearish bias. Immediate support for the precious metal remains at 1,786, and a breakout below this level could open up further room for selling until 1,780 or 1,772.

The resistance remains at 1,793, and a bullish breakout at this level could lead the gold price towards the 1,800 or 1,810 mark. Consider staying bullish if the price is above 1,793, and vice versa.Good luck!