The GOLD price will try to break above the nearby resistance level of $1,940.00 during the Tokyo trading session. Rising demand for US government bonds has pushed down rates, which has boosted the price of GOLD . Yields on 10-year US Treasury bonds have fallen to around 3.45%.

When S&P 500 futures drop, investors become less willing to take chances. The December earnings missed by Microsoft and a technical problem has hurt the NASDAQ and the New York Stock Exchange (NYSE). As investors wait for new impetus from US Gross Domestic Product (GDP) statistics, the US Dollar Index (DXY) shows a sideways shape around 101.50.

A big drop in US GDP could help GOLD prices because it would make it more likely that the Federal Reserve (Fed) will announce a smaller increase in interest rates at its meeting in February. The GDP is expected to fall to 2.8% from 3.2% in the previous announcement for Q4CY2022.

As the Federal Reserve is expected to undershoot market expectations for the peak fed funds rate and as emphasis turns to policy tightening in other advanced countries, CIBC Capital Markets economists predict a weakening of the mighty US dollar in 2023 for the USD Index forecast.

Gold Technical Outlook

Gold’s price held steady above the support line of the intraday bullish channel, and now that it has begun to break out of that support, bulls are more confident than ever that the bullish trend will continue both today and in the near future. The door is wide open to our hoped-for target of $1,950.

The EMA50 has given the indicated bullish wave positive support, and so long as the price stays above $1,925, the wave will remain valid. Most likely, prices will move between the support level of 1,920 and the resistance level of 1,955.

Today’s trend is anticipated to be bullish.