GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Breakout: Gold eyes $2,687.65 as immediate resistance, with further targets at $2,704.34 and $2,724.66.
- EMA Support: The 50 EMA at $2,641.87 highlights short-term bullish strength.
- NFP Impact: Upcoming U.S. labor data could define gold’s direction, with support at $2,624.44 and $2,603.20 critical for downside moves.
Gold (XAU/USD) is trading at $2,673.04, reflecting modest gains as it holds above the pivot point at $2,663.62. The 4-hour chart indicates a cautiously bullish sentiment, with immediate resistance at $2,687.65.
A breakout above this level could propel prices toward the next targets of $2,704.34 and $2,724.66. On the downside, immediate support lies at $2,662.44, with deeper levels at $2,603.20 and $2,583.91.
The 50 EMA at $2,641.87 reinforces the short-term bullish momentum, as the price remains above this level. RSI readings hover near neutral, suggesting room for further upside if bullish momentum strengthens.
However, traders should monitor price action closely near the pivot, as a sustained break below $2,663.62 could shift sentiment bearish, driving a move toward key support at $2,624.44.
Market participants are focused on geopolitical risks and upcoming U.S. economic data, particularly the Nonfarm Payrolls (NFP) report.
These factors could significantly influence gold's near-term trajectory. A close above $2,687.65 would validate bullish momentum, targeting higher resistance levels. Conversely, failure to hold above the pivot risks a deeper pullback to the lower support zones.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2663
Take Profit – 2688
Stop Loss – 2644
Risk to Reward – 1: 1.3
Profit & Loss Per Standard Lot = +$2500/ -$1900
Profit & Loss Per Mini Lot = +$250/ -$190
USD/JPY Price Analysis – Jan 09, 2025
Daily Price Outlook
During the European trading session, the USD/JPY currency pair extended its bearish trend, remaining under pressure around the 158.17 level, before hitting an intra-day low of 157.76.
Despite Japan's strong wage growth data, there’s uncertainty about when the Bank of Japan (BoJ) will raise interest rates again, which has been holding back the yen. Meanwhile, the widening yield gap between the US and Japan, fueled by the Federal Reserve’s hawkish stance, continues to weigh on the yen.
However, speculation that Japanese authorities might step in to support the yen is preventing aggressive selling. This, along with global geopolitical risks and concerns over US President-elect Donald Trump’s protectionist policies, is providing some support for the yen.
On the flip side, the recent pullback in US bond yields due to a flight to safety has kept the USD bulls on the defensive, limiting the extent of the dollar's strength.
This cautious sentiment in the market is putting a lid on the USD/JPY pair's movement, as the yen's safe-haven appeal is offering some support, despite the broader strength of the US dollar.
Impact of BoJ Data and US Policy Uncertainty on USD/JPY Pair Volatility
On the BoJ front, government data released this Thursday showed Japan's base salary increased by 2.7% in November, marking the fastest rise since 1992.
Overtime pay also saw growth, rising 1.6% from the previous month's 0.7% gain. However, inflation-adjusted real wages fell for the fourth month in a row, dropping by 0.3%.
This came as the inflation rate used for wage calculations jumped from 2.6% in October to 3.4% in November. The BoJ has said that sustained wage increases are necessary for raising borrowing costs, and these figures provide a modest boost to the Japanese yen.
Despite this positive data, investors remain skeptical that the BoJ will raise rates in its January meeting. Many expect the BoJ to wait until March, partly due to uncertainty over US President-elect Donald Trump's potential protectionist policies.
CNN reported that Trump is considering declaring a national economic emergency to justify imposing tariffs on both allies and adversaries, which sent the yield on the 10-year US government bond to its highest level since April 25.
This overshadowed the mixed labor market data from the US, which showed a slower-than-expected rise in private sector jobs for December but a drop in unemployment claims to an 11-month low.
Looking ahead, market focus will remain on speeches from influential FOMC members later today, but the most important event will be Friday's US Nonfarm Payrolls (NFP) report.
Investors are keen to see how the US labor market is performing and how this could impact future interest rate decisions by the Federal Reserve. The mixed economic data, combined with the uncertainty surrounding US policies, is adding volatility to global markets, including the USD/JPY pair.
Therefore, the data and uncertainty surrounding the BoJ’s rate hike and US policies contribute to volatility in the USD/JPY pair. A cautious market sentiment, influenced by mixed economic data and geopolitical risks, may limit significant movements in the pair.
USD/JPY – Technical Analysis
USD/JPY is trading at 157.930, down 0.25%, reflecting a bearish tone as the pair struggles to hold above key technical levels. The pivot point at 158.475 remains a critical marker, and the pair's inability to reclaim this level suggests further downside pressure.
The 50 EMA at 157.544 acts as near-term resistance, aligning with broader selling momentum. RSI readings indicate bearish sentiment, with the pair at risk of deeper declines if momentum persists.
Immediate resistance lies at 159.406, followed by 160.406 and 161.117, which may limit any bullish recovery.
On the downside, immediate support is found at 156.904, with further levels at 155.975 and 154.924 offering potential buffers against an extended selloff. A sustained move below the pivot point could trigger a decline toward 156.904 and beyond.
Traders considering short positions may look to sell below 158.448, targeting 156.904 while setting a stop-loss at 157.074.
A break above 158.475 would be required to negate the bearish outlook, paving the way for a test of 159.406. With a cautious sentiment prevailing, traders should monitor price action near the pivot for further clues on directional strength.
Related News
- GOLD Price Analysis – Jan 09, 2025
GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Gold consolidates near the $2,646 pivot, eyeing $2,670.45 resistance.
- Support levels at $2,624 and $2,603 provide critical downside buffers.
- RSI at 57 indicates neutral momentum; breakout to determine trend.
Gold is trading at $2,657.43, down 0.16%, as traders digest recent price movements within a consolidation phase.
The 4-hour chart shows gold trading just above its pivot point at $2,646.10, supported by the 50 EMA at $2,636.37, suggesting near-term stability.
However, the RSI at 57 reflects neutral momentum, leaving the next directional move dependent on price action near key levels.
Immediate resistance lies at $2,670.45, with subsequent targets at $2,692.82 and $2,710.72, signaling potential upside if bullish momentum builds.
On the downside, immediate support is at $2,624.44, followed by stronger levels at $2,603.20 and $2,583.91. A break below $2,646.10 could drive bearish sentiment toward these levels, while a bounce from the pivot point may reignite upward momentum.
Traders eyeing long positions could consider a buy limit near $2,652 with a take-profit target of $2,672 and a stop-loss at $2,640.
The tight trading range suggests caution as gold remains influenced by broader market drivers, including dollar strength and geopolitical factors. Watch for a breakout above $2,670.45 or a decisive move below $2,646.10 for clearer direction.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Limit 2652
Take Profit – 2672
Stop Loss – 2640
Risk to Reward – 1: 1.6
Profit & Loss Per Standard Lot = +$2000/ -$1200
Profit & Loss Per Mini Lot = +$200/ -$120
GOLD Price Analysis – Jan 09, 2025
Daily Price Outlook
Gold price (XAU/USD) failed to continue its recent upward trend and turned bearish around the 2,659 level, hitting an intra-day low of 2,655.
This decline is mainly driven by expectations that the Federal Reserve may slow down its interest rate cuts, which has helped the US Dollar stay strong near its two-year high.
On the flip side, the geopolitical tensions and concerns over a potential trade war continue to offer support to gold, which is often seen as a safe-haven asset in times of uncertainty.
Investors seem to be holding back from making major moves, possibly waiting for the release of the US Nonfarm Payrolls (NFP) report on Friday.
Moreover, speeches from key Federal Reserve members scheduled for later today could offer additional clues about the central bank’s stance on future interest rate moves.
These factors make the short-term outlook for gold uncertain, and its price could be influenced by both the US economic data and any developments in global geopolitical tensions.
US Dollar Strengthens Amid Hawkish Fed Signals and Rising Treasury Yields, Pressuring Gold
On the US front, the broad-based US Dollar has been holding strong and received support from recent hawkish comments in the Federal Open Market Committee (FOMC) Meeting Minutes and concerns about tariff plans under the incoming Trump administration.
The US Dollar has been further bolstered by rising Treasury bond yields, with the 10-year yield climbing to nearly 4.73% before easing slightly to 4.67%, while the 30-year bond approached 4.93%.
However, the FOMC Minutes from December's meeting showed that most members were in favor of a 25 basis point rate cut, but they were also cautious.
They are worried that trade and immigration policy changes could keep inflation high for longer than expected.
On the data front, US Initial Jobless Claims for the week ending January 3 dropped to 201,000, which was better than the expected 218,000.
However, the ADP Employment Change for December was 122,000, falling short of the expected 140,000.
Meanwhile, the US ISM Services PMI (a key indicator of economic activity) rose to 54.1 in November, up from 52.1, beating expectations of 53.3. However, the Prices Paid Index, which reflects inflation, increased sharply to 64.4 from 58.2.
Federal Reserve officials have expressed concerns about the pace of inflation reduction. Atlanta Fed President Raphael Bostic urged caution in policy decisions, suggesting that interest rates should remain high until inflation reaches the 2% target.
Consequently, the US Dollar's strength, rising Treasury yields, and cautious Federal Reserve stance are putting pressure on gold prices.
GOLD (XAU/USD) – Technical Analysis
Gold is trading at $2,657.43, down 0.16%, as traders digest recent price movements within a consolidation phase.
The 4-hour chart shows gold trading just above its pivot point at $2,646.10, supported by the 50 EMA at $2,636.37, suggesting near-term stability.
However, the RSI at 57 reflects neutral momentum, leaving the next directional move dependent on price action near key levels.
Immediate resistance lies at $2,670.45, with subsequent targets at $2,692.82 and $2,710.72, signaling potential upside if bullish momentum builds.
On the downside, immediate support is at $2,624.44, followed by stronger levels at $2,603.20 and $2,583.91. A break below $2,646.10 could drive bearish sentiment toward these levels, while a bounce from the pivot point may reignite upward momentum.
Traders eyeing long positions could consider a buy limit near $2,652 with a take-profit target of $2,672 and a stop-loss at $2,640.
The tight trading range suggests caution as gold remains influenced by broader market drivers, including dollar strength and geopolitical factors. Watch for a breakout above $2,670.45 or a decisive move below $2,646.10 for clearer direction.
Related News
- AUD/USD Price Analysis – Jan 09, 2025
GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Immediate resistance at $2,662.21; next hurdles: $2,676.49 and $2,692.86.
- Support levels include $2,624.44, $2,603.20, and $2,583.91.
- RSI at 56 and 50 EMA at $2,632.77 support moderate bullish sentiment.
Gold prices are trading at $2,649.84, up 0.04%, as the precious metal holds within a tight consolidation range near its pivot point of $2,639.12.
On the 4-hour chart, immediate resistance is seen at $2,662.21, with further hurdles at $2,676.49 and $2,692.86, reflecting a strong bullish zone if prices sustain above the pivot level.
Immediate support lies at $2,624.44, with deeper levels at $2,603.20 and $2,583.91, marking critical zones for bearish shifts.
The technical setup aligns with a cautiously bullish bias. The 50 EMA at $2,632.77 is acting as a dynamic support level, reinforcing the upward trend.
The RSI at 56 indicates moderate bullish momentum without signs of overbought conditions, providing room for price advancement.
A clean break above $2,662.21 could trigger buying interest, pushing prices toward the next resistance at $2,676.49.
Conversely, a breach below $2,639 may lead to a retest of support at $2,624.44, signaling potential bearish pressure.
Traders are advised to consider long positions above $2,640, with a take-profit target at $2,662 and a stop-loss at $2,628.
Market sentiment hinges on upcoming U.S. economic data, which could influence gold’s safe-haven appeal.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2640
Take Profit – 2662
Stop Loss – 2628
Risk to Reward – 1: 1.8
Profit & Loss Per Standard Lot = +$2200/ -$1200
Profit & Loss Per Mini Lot = +$220/ -$120
GOLD Price Analysis – Jan 08, 2025
Daily Price Outlook
Gold prices (XAU/USD) have been fluctuating within a narrow range, hovering around $2,645 to $2,650. The precious metal is showing a slight upward trend, but overall movement remains subdued. This pause in momentum comes as investors are taking a cautious stance ahead of the release of the Federal Open Market Committee (FOMC) Minutes on Wednesday.
Market participants are hoping for clearer insights into the Fed's future policy decisions, especially regarding potential interest rate cuts, which could influence gold’s price direction.
At the same time, gold faces some resistance due to rising U.S. Treasury bond yields. Higher yields make gold less appealing, as it doesn't offer interest or dividends like other investments.
In the meantime, the strength of the U.S. Dollar continues to add downward pressure on the yellow metal, making it more expensive for buyers holding other currencies.
On the other hand, geopolitical risks, such as the ongoing trade tensions and global political instability, continue to provide a safety net for gold. Investors are still turning to the precious metal as a hedge against potential inflation and economic turmoil.
US Dollar Strength and Fed’s Cautious Stance Weigh on Gold Price Outlook
On the US front, the broad-based US dollar has been holding steady above 108.50, reflecting its strength in the global market. The recent rise in the 10-year US Treasury bond yield, which is now at 4.67%, has contributed to this. This increase highlights the changing outlook of investors on the Federal Reserve’s interest rate plans. As the yield rises, it signals that the market expects the Fed to maintain a more aggressive stance on interest rates for a while.
In addition to the bond market, economic data has been supportive of the dollar. The ISM Services PMI for November increased to 54.1, surpassing expectations, and showing growth in the service sector. However, the Prices Paid Index, a measure of inflation, also surged, indicating rising costs.
Meanwhile, the ISM Manufacturing PMI improved slightly to 49.3 in December, hinting that the manufacturing sector is showing some signs of recovery, even if still in contraction territory.
Traders remain cautious due to concerns about President-elect Trump’s potential economic policies, especially regarding tariffs that could raise living costs. Federal Reserve officials have also expressed concerns about inflation. The latest projections from the Federal Open Market Committee (FOMC) show fewer expected rate cuts in 2025, reflecting caution as inflation remains persistent.
Fed officials like Raphael Bostic and Thomas Barkin have emphasized that interest rates should stay high until inflation is better controlled, which has added to the uncertainty in the market.
Therefore, the stronger US Dollar and rising Treasury bond yields create headwinds for gold, as higher yields make non-yielding assets like gold less attractive. Additionally, the Fed’s cautious stance on inflation may limit gold's potential for significant price increases.
GOLD (XAU/USD) – Technical Analysis
Gold prices are trading at $2,649.84, up 0.04%, as the precious metal holds within a tight consolidation range near its pivot point of $2,639.12.
On the 4-hour chart, immediate resistance is seen at $2,662.21, with further hurdles at $2,676.49 and $2,692.86, reflecting a strong bullish zone if prices sustain above the pivot level.
Immediate support lies at $2,624.44, with deeper levels at $2,603.20 and $2,583.91, marking critical zones for bearish shifts.
The technical setup aligns with a cautiously bullish bias. The 50 EMA at $2,632.77 is acting as a dynamic support level, reinforcing the upward trend.
The RSI at 56 indicates moderate bullish momentum without signs of overbought conditions, providing room for price advancement.
A clean break above $2,662.21 could trigger buying interest, pushing prices toward the next resistance at $2,676.49.
Conversely, a breach below $2,639 may lead to a retest of support at $2,624.44, signaling potential bearish pressure.
Traders are advised to consider long positions above $2,640, with a take-profit target at $2,662 and a stop-loss at $2,628.
Market sentiment hinges on upcoming U.S. economic data, which could influence gold’s safe-haven appeal.
Related News
- GBP/USD Price Analysis – Jan 08, 2025
GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Resistance Levels: $2,662.22, $2,675.23, $2,692.86.
- Support Zones: $2,624.44, $2,603.20, $2,583.91.
- Momentum: RSI at 54; price above 50 EMA indicates moderate bullish sentiment.
Gold (XAU/USD) is trading at $2,640.11, up 0.15% in the last session, as it continues to consolidate within a moderately bullish framework on the 4-hour chart.
The price hovers above the pivot point at $2,637.83, signaling a potential breakout from key levels. Immediate resistance is set at $2,662.22, followed by $2,675.23 and the critical $2,692.86 level. A successful breach above these levels could extend the bullish momentum.
On the downside, immediate support is observed at $2,624.44, with further safety levels at $2,603.20 and $2,583.91.
The 50-day EMA at $2,629.15 acts as a key support zone, maintaining the positive bias. The RSI stands at 54, suggesting neutral to moderate bullish momentum, with room for additional upside.
The consolidation phase reflects market indecision, but sustained movement above $2,637.83 may trigger buying interest targeting the $2,660 range.
Conversely, a break below $2,624.44 could shift sentiment, exposing gold to deeper retracements toward $2,583.91. Traders should monitor these levels closely for near-term directional clarity.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Buy Above 2637
Take Profit – 2660
Stop Loss – 2619
Risk to Reward – 1: 1.2
Profit & Loss Per Standard Lot = +$2300/ -$1800
Profit & Loss Per Mini Lot = +$230/ -$180
GOLD Price Analysis – Jan 07, 2025
Daily Price Outlook
Despite the strong US dollar and the Fed's hawkish stance, gold (XAU/USD) has managed to maintain its upward momentum, pushing up to around the 2,645 level and even hitting an intra-day high of 2,646.
This surprising strength in gold can largely be attributed to the ongoing geopolitical risks, particularly the extended Russia-Ukraine conflict and rising tensions in the Middle East, which are pushing investors towards the safety of gold.
On the other hand, a stronger-than-expected rise in China’s services sector might boost global risk sentiment, which could reduce the demand for gold as a safe-haven asset.
However, the unexpected dip in China's manufacturing PMI and the possibility of an interest rate cut by the People's Bank of China may help maintain gold’s appeal for the time being.
US Dollar Strengthens Amid Improving Economic Data and Fed’s Cautious Outlook
On the US front, the broad-based US dollar has been edging higher, approaching the 108.00 mark on the US Dollar Index (DXY), which tracks the USD against six major currencies.
This comes as the ISM Manufacturing PMI improved to 49.3 in December, up from 48.4 in November, beating market expectations. The stronger PMI signals a slight recovery in the manufacturing sector, adding support to the dollar.
Richmond Fed President Thomas Barkin mentioned that the US central bank’s policy rate should remain restrictive until inflation shows clearer signs of heading back to the 2% target.
Similarly, Fed Governor Adriana Kugler and San Francisco Fed President Mary Daly pointed out the challenges central bankers face in balancing interest rates this year, with a focus on slowing monetary easing.
Traders are keeping a close eye on the economic policies of President-elect Trump, particularly concerns over potential tariffs that could raise living costs.
These worries, along with the Federal Reserve’s recent projection of fewer rate cuts in 2025, reflect caution in the markets due to persistent inflation pressures.
China’s Economic Growth Strategies and Their Potential Impact on Gold Prices
On the other hand, the officials from the People’s Bank of China (PBoC), the National Development and Reform Commission (NDRC), and the Ministry of Finance (MoF) are scheduled to hold a briefing on Wednesday to discuss expanding the consumer goods trade-in program. This initiative is part of China’s efforts to boost domestic consumption and support economic growth.
On the data front, the Caixin China Services PMI showed positive growth, rising to 52.2 in December from 51.5 in November, surpassing expectations.
This marks the fastest growth in the services sector since May 2024. However, the Caixin Manufacturing PMI fell unexpectedly to 50.5 in December, down from 51.5 in November, missing market predictions. This highlights the mixed performance between China's service and manufacturing sectors.
In addition, the Shanghai Stock Exchange has committed to further opening up China’s capital markets during a meeting with foreign institutions, signaling a move to attract more international investment. Despite challenges in the global economy, China’s strong fundamentals continue to show resilience.
According to the Financial Times, the PBoC is considering an interest rate cut at an appropriate time this year, which could impact markets, particularly in Australia, given their strong trade ties with China.
Therefore the positive growth in China’s services sector and plans to boost domestic consumption could strengthen market sentiment, potentially reducing gold’s appeal as a safe-haven asset. However, any interest rate cuts by the PBoC may support gold’s attractiveness.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,640.11, up 0.15% in the last session, as it continues to consolidate within a moderately bullish framework on the 4-hour chart.
The price hovers above the pivot point at $2,637.83, signaling a potential breakout from key levels. Immediate resistance is set at $2,662.22, followed by $2,675.23 and the critical $2,692.86 level. A successful breach above these levels could extend the bullish momentum.
On the downside, immediate support is observed at $2,624.44, with further safety levels at $2,603.20 and $2,583.91.
The 50-day EMA at $2,629.15 acts as a key support zone, maintaining the positive bias. The RSI stands at 54, suggesting neutral to moderate bullish momentum, with room for additional upside.
The consolidation phase reflects market indecision, but sustained movement above $2,637.83 may trigger buying interest targeting the $2,660 range.
Conversely, a break below $2,624.44 could shift sentiment, exposing gold to deeper retracements toward $2,583.91. Traders should monitor these levels closely for near-term directional clarity.
Related News
- AUD/USD Price Analysis – Jan 07, 2025
GOLD Price Analysis – Jan 06, 2025
Daily Price Outlook
Gold price (XAU/USD) failed to stop its bearish trend and remained well offered around 29.55 level, hitting the intra-day low of 29.41 level.
However, the reason for its downward trend can be attributed to the bullish US dollar, which gained traction in the wake of the Federal Reserve's (Fed) hawkish signal that there would be fewer rate cuts in 2025.
Moreover, the upticks in the US dollar were further bolstered by the optimism over US President-elect Donald Trump's expansionary policies.
On the other hand, the geopolitical risks from the protracted Russia-Ukraine war and tensions in the Middle East, along with concerns about Trump's tariff plans, should limit losses for the safe-haven Gold price.
Traders now look forward to the release of the final US Services PMI and Factory Orders data for some impetus later during the North American session.
Meanwhile, the stronger-than-expected Caixin China Services PMI signals economic growth, supporting risk appetite and reducing demand for safe-haven assets like gold.
Meanwhile, the disappointing Manufacturing PMI adds uncertainty, but overall, gold remains under pressure from global economic optimism.
US Dollar Strength and Economic Resilience Weigh on Gold Prices Amid Geopolitical Tensions
On the US front, the broad-based US dollar has been flashing green as it remains close to a two-year high. This strength is driven by the Federal Reserve's (Fed) recent hawkish signals, suggesting fewer rate cuts in 2025.
Additionally, optimism about US President-elect Donald Trump's expansionary policies continues to support the dollar. As a result, the strong dollar is putting pressure on gold, which struggles to perform well when the dollar is rising.
On the data front, the US economy showed signs of resilience with the ISM Manufacturing PMI improving to 49.3 in December, better than the market expectation of 48.4.
This positive data, alongside lower-than-expected Initial Jobless Claims for the week ending December 27, suggests that the economy is doing better than anticipated.
Richmond Fed President Thomas Barkin also emphasized that the Fed should maintain restrictive policy rates until inflation moves closer to the 2% target. These factors combined are helping to support the US dollar.
Apart from this, the ongoing escalating geopolitical tensions, such as the ongoing Russia-Ukraine conflict and concerns in the Middle East, continue to support the US dollar as a safe-haven currency.
The uncertainty caused by these events, along with caution about President-elect Trump's economic policies, is keeping the dollar strong.
Traders remain cautious about future rate cuts due to persistent inflationary pressures, with fewer expected in 2025. This combination of factors is likely to keep the US dollar strong in the near term, further weighing on gold prices.
Therefore, the strength of the US dollar, driven by the Fed's hawkish stance, positive economic data, and geopolitical tensions, is putting downward pressure on gold.
China's Economic Growth and Its Potential Impact on Gold Prices
On the China front, the Caixin China Services Purchasing Managers' Index (PMI) rose to 52.2 in December, up from 51.5 in November, showing the fastest growth in the services sector since May. This exceeded market expectations of 51.7, suggesting strong performance in the services industry.
However, the Caixin Manufacturing PMI dropped unexpectedly to 50.5 in December, down from 51.5 in November, which fell short of market forecasts. This highlights mixed signals in China’s economic recovery, with the services sector performing well, but manufacturing facing challenges.
In addition, the Shanghai Stock Exchange has committed to further opening up capital markets during a meeting with foreign institutions.
This move aims to attract more foreign investment into China, supporting economic growth. Despite some challenges, China’s economy remains resilient, supported by solid fundamentals that help it navigate a complex global environment.
Looking ahead, the People's Bank of China (PBoC) is expected to cut interest rates at an appropriate time this year, which could help stimulate further growth.
The National Development and Reform Commission (NDRC) expressed confidence in continuing the recovery in 2025, with plans to increase funding through ultra-long treasury bonds to support key programs. These efforts are expected to maintain steady consumption growth in China throughout the year.
Therefore, the positive growth in China’s services sector and plans for economic support could strengthen investor confidence, leading to a potential rise in demand for gold as a safe-haven asset. However, any rate cuts from China’s central bank may also weigh on gold's appeal.
GOLD (XAU/USD) – Technical Analysis
Gold (XAU/USD) is trading at $2,631.54, down 0.31% on the day, struggling to maintain momentum as the US dollar and Treasury yields remain elevated.
The immediate pivot point at $2,639.26 acts as a critical resistance level, with further upside capped by $2,662.22, $2,675.23, and $2,692.86.
Conversely, key support levels are positioned at $2,621.73, $2,605.08, and $2,583.91, where buyers may step in.
The RSI currently reads 46, reflecting neutral momentum but leaning towards bearish sentiment. The 50 EMA at $2,626.94 underscores near-term resistance, aligning with the pivot point.
Gold’s inability to decisively break above $2,639 suggests sellers are retaining control, with a potential move toward $2,614 if the downward trend persists.
From a technical perspective, the broader outlook remains bearish below $2,639, with the descending trendline and weakening RSI pressuring further declines.
A break below $2,621 could accelerate selling toward $2,605 and $2,583, marking critical downside targets. However, a bullish recovery would require a sustained push above $2,662 to invalidate the current bearish setup.
Related News
- GBP/USD Price Analysis – Jan 06, 2025
GOLD Price Analysis and Trade Forecast: Daily Trading Signal
Daily Price Outlook
- Bearish Momentum: Pivot resistance at $2,639 holds, with gold trending toward $2,614 support.
- Technical Resistance: Immediate barriers at $2,662, $2,675, and $2,692 cap bullish attempts.
- Focus on Data: Nonfarm Payrolls could influence gold’s direction through the dollar and Treasury yields.
Gold (XAU/USD) is trading at $2,631.54, down 0.31% on the day, struggling to maintain momentum as the US dollar and Treasury yields remain elevated.
The immediate pivot point at $2,639.26 acts as a critical resistance level, with further upside capped by $2,662.22, $2,675.23, and $2,692.86.
Conversely, key support levels are positioned at $2,621.73, $2,605.08, and $2,583.91, where buyers may step in.
The RSI currently reads 46, reflecting neutral momentum but leaning towards bearish sentiment. The 50 EMA at $2,626.94 underscores near-term resistance, aligning with the pivot point.
Gold’s inability to decisively break above $2,639 suggests sellers are retaining control, with a potential move toward $2,614 if the downward trend persists.
From a technical perspective, the broader outlook remains bearish below $2,639, with the descending trendline and weakening RSI pressuring further declines.
A break below $2,621 could accelerate selling toward $2,605 and $2,583, marking critical downside targets. However, a bullish recovery would require a sustained push above $2,662 to invalidate the current bearish setup.
GOLD (XAU/USD) - Trade Ideas
Entry Price – Sell Below 2639
Take Profit – 2614
Stop Loss – 2653
Risk to Reward – 1: 1.7
Profit & Loss Per Standard Lot = +$2500/ -$1400
Profit & Loss Per Mini Lot = +$250/ -$140