Gold on the Rise to $1,840: Prepare for a Buying Trade
So far this Tuesday, the gold price has challenged six-month highs while remaining above the $1,825 critical barrier mark.
So far this Tuesday, the GOLD price has challenged six-month highs while remaining above the $1,825 critical barrier mark. Despite the overall rise in the US dollar, the gold price is expected to continue its ongoing ascent into early 2023.
Concerns over a future global economic slowdown, China’s economic rebound, and increased inflation are impacting the market and driving demand for GOLD , the traditional safe-haven asset. Expectations that the US Federal Reserve (Fed) would continue its tightening cycle this year in order to combat rising inflation have kept investors’ sentiment broadly depressed.
The risk-off movements are also assisting the US Dollar in finding a floor, limiting the brilliant metal’s rise. Furthermore, US Treasury bond yields ended the final week of 2022 on a positive note, limiting the non-yielding gold price’s upside attempts.
The focus now shifts to the first major US economic data set to be issued this year, the December S&P Global Manufacturing PMI, for new trade momentum. Markets will also be watching Wall Street for more clues on risk sentiment.
Gold Technical Outlook
The GOLD price started the day off with a strong rise, going over $1,824 and getting close to the second expected target of $1,850. We advise that the bullish trend continues within the bullish channel displayed on the chart to achieve more gains that reach the $1,900 region.
As a result, the bullish trend will stay active on an intraday and short-term basis, supported by the EMA50, which carries the price from below; however, breaking $1,824.50 followed by $1,812.25 levels would put the price under negative pressure and initiate an immediate bearish correction.
Today’s trading range is likely to be between $1,830 support and $1,865 resistance.
Today’s projected trend: Bullish
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