Gold Suprised Everyone. Will it Continue the Momentum?
Gold was trading around 2,658, above the 21 SM, and within the bullish trend channel forming since December 27 with a bullish bias.
Since gold is located above the 21 SMA and is now breaking the 200 EMA, the bullish force will likely prevail and the metal could reach 4/8 of Murray at 2,663 in the next hours.
On the other hand, a strong rejection of the resistance at 2,663 could mean a technical correction for gold. Hence, we could sell below this area with targets at 2,631and even 2,617 at 2/8 Murray.
If XAU/USD consolidates above 2,663 (4/8 Murray) in the next few days, it will be seen as an opportunity to buy because a solid uptrend could be established and the instrument could reach the psychological level of $2,700 in the short term and even 6.8 Murray located at 2,734.
The indicator is showing overbought signals. so, we believe that once the instrument settles below 2,663, this will be seen as an opportunity to sell. In case gold turns back below the 200 EMA around 2,658 we could sell with targets at 2,631 and 2,617.
Since gold is located above the 21 SMA and is now breaking the 200 EMA, the bullish force will likely prevail and the metal could reach 4/8 of Murray at 2,663 in the next hours.
On the other hand, a strong rejection of the resistance at 2,663 could mean a technical correction for gold. Hence, we could sell below this area with targets at 2,631and even 2,617 at 2/8 Murray.
If XAU/USD consolidates above 2,663 (4/8 Murray) in the next few days, it will be seen as an opportunity to buy because a solid uptrend could be established and the instrument could reach the psychological level of $2,700 in the short term and even 6.8 Murray located at 2,734.
The indicator is showing overbought signals. so, we believe that once the instrument settles below 2,663, this will be seen as an opportunity to sell. In case gold turns back below the 200 EMA around 2,658 we could sell with targets at 2,631 and 2,617.
Note
Analysis
It's no surprise that banks and investment firms are providing moderately optimistic forecasts for gold prices in 2025. The Financial Times consensus predicts a 7% increase. Goldman Sachs is the most bullish among analysts, forecasting that prices could reach $3,000 per ounce. Conversely, Barclays and Macquarie project declines to $2,500. Macquarie suggests that although the precious metal faces challenges from a stronger dollar, demand from consumers and central banks will help prevent a more significant drop.
XAU/USD bulls are hopeful for lower interest rates, geopolitical factors, and central bank purchases. Even as the pace of monetary policy easing slows, the fed is still expected to lower borrowing costs further. This shift could redirect part of the $6.7 trillion capital in money market funds into gold-oriented ETFs.
Gold reached an all-time high before experiencing a sharp decline in November, driven by the "buy the rumor, sell the fact" principle. XAU/USD bulls remained cautious about Donald Trump's potential return to power in the U.S. Once his return became a reality, many began to lock in their profits. Nevertheless, uncertainty persists, and Trump's policies are expected to heighten volatility in financial markets, which could continue to support gold prices.
From a technical perspective, the daily chart for gold illustrates the ongoing formation of a "Spike and ledge" pattern. A rebound from the fair value of $2,645 per ounce might provide a basis for establishing or adding to short positions. Conversely, a breakout above this level would indicate potential opportunities for further purchases.
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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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