Gold Bulls Take A Breather Just Below $1,950 – US GDP To Watch Out For

Posted Thursday, January 26, 2023 by
Arslan Butt • 1 min read

GOLD prices recently reached a nine-month high but have since declined due to the anticipation of key US events and data releases. Bulls are still aiming for a fresh multi-month peak in the mid-$1,900s range.

 Recently,prices have been volatile due to many factors, including the upcoming US economic data, a light schedule of events, and diverging views from the Federal Reserve and European Central Bank.

Investors are being careful with their investments in this uncertain market environment. With the holidays in China and the Federal Reserve’s blackout period, combined with the European Central Bank’s week-long silence starting Thursday, XAU/USD movements are likely to be limited.

Recently, speculation around releasing top-tier data has kept investors on their toes and the GOLD price in focus. The US Dollar’s weakness has also contributed to gold’s upside momentum. In addition, how the macroeconomic data looks will be very important for XAU/USD traders in light of the possibility of a Fed rate hike. Poor results could see the market recover its multi-day high.

Despite the prevailing bearish attitude towards GOLD , any positive surprises from upcoming economic data could spark a much-needed recovery in the price of the precious metal.

Gold Technical Outlook

GOLD prices have shown continuous downward pressure recently, with the $1,928 level as an important benchmark. Breaking this barrier could put an end to the recent bullish trend and traders should be aware of this potential risk when entering into new positions.
To be bearish and correct the price, it needs to go below $1,937. If it climbs above that mark, it may return to a bullish trend with its next destination set at $1,950.

Market technical outlook suggest that the GOLD prices today should trade within a range of $1,915 as support and $1,950 as resistance.
The expected trend for today: Bullish

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