Gold (XAUUSD)Short
Trading Signals for GOLD (XAU/USD) for january 7-9, 2025?
Gold was trading around 2,627 making a technical correction after having reached the top of the downtrend channel and now we are seeing a technical bounce.
A technical bounce is likely to occur up to the 2,640 area. If gold bounces above the bottom of the downtrend channel, we can expect it to reach 2,642. This area represents strong resistance as it coincides with the 200 EMA and could act as a strong top,
On the other hand, in case gold breaks and consolidates above the downtrend channel and above the 200 EMA, we could expect a further bullish movement. Therefore, the metal could reach 2,656 nd even 2,734.
A drop below 2,640 could accelerate the bearish movement of gold and the price could reach the psychological level of 2,600 which coincides with the bottom of the bullish trend channel forming since the beginning of November. The metal could even cover the gap left at 2,562. Finally, it could reach 1/8 of Murray located at 2.539.
The level to pay attention to is the area of 2,640. Above this. the outlook will be positive. in contrast, once below this level, we could expect gold to continue losing value.
Analysis and Forecast
Gold continues to attract sellers for the second consecutive day. The hawkish signal from the Federal Reserve regarding a slower pace of interest rate cuts in 2025 continues to support higher yields on US Treasury bonds, acting as a key factor diverting funds away from the yellow metal. However, the ongoing pullback in the US dollar from November 2022highs, achieved last Thursday, along with geopolitical risks and fears of a trade war, mar help limit the decline in precious metal prices.
Ahead of this week's significant US macroeconomic data, including Friday's Non-Farm Payrolls (NFP) report, traders are advised to avoid aggressive directional bets. Additionally, the minutes from the Federal Open Market Committee (FOMC) December meeting, set to be released on Wednesday, will play a crucial role in influencing the short-term dynamics of the US dollar, providing momentum for the XAU/USD pair.
Happy Trading!
A technical bounce is likely to occur up to the 2,640 area. If gold bounces above the bottom of the downtrend channel, we can expect it to reach 2,642. This area represents strong resistance as it coincides with the 200 EMA and could act as a strong top,
On the other hand, in case gold breaks and consolidates above the downtrend channel and above the 200 EMA, we could expect a further bullish movement. Therefore, the metal could reach 2,656 nd even 2,734.
A drop below 2,640 could accelerate the bearish movement of gold and the price could reach the psychological level of 2,600 which coincides with the bottom of the bullish trend channel forming since the beginning of November. The metal could even cover the gap left at 2,562. Finally, it could reach 1/8 of Murray located at 2.539.
The level to pay attention to is the area of 2,640. Above this. the outlook will be positive. in contrast, once below this level, we could expect gold to continue losing value.
Analysis and Forecast
Gold continues to attract sellers for the second consecutive day. The hawkish signal from the Federal Reserve regarding a slower pace of interest rate cuts in 2025 continues to support higher yields on US Treasury bonds, acting as a key factor diverting funds away from the yellow metal. However, the ongoing pullback in the US dollar from November 2022highs, achieved last Thursday, along with geopolitical risks and fears of a trade war, mar help limit the decline in precious metal prices.
Ahead of this week's significant US macroeconomic data, including Friday's Non-Farm Payrolls (NFP) report, traders are advised to avoid aggressive directional bets. Additionally, the minutes from the Federal Open Market Committee (FOMC) December meeting, set to be released on Wednesday, will play a crucial role in influencing the short-term dynamics of the US dollar, providing momentum for the XAU/USD pair.
Happy Trading!
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Personal Contact t.me/FxMr_Signal
Official Telegram Channel
t.me/MrForex_Pips
Personal Contact t.me/FxMr_Signal
t.me/MrForex_Pips
Personal Contact t.me/FxMr_Signal
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