GOLD → A U-turn? Medium-term targets. Up ahead, 2790 for OANDA:XAUUSD by RLinda

GOLD → A U-turn? Medium-term targets. Up ahead, 2790

is taking advantage of the dollar correction and almost reaches ATH 2790. The chance of updating the maximum is quite high, but there are a few “BUTs”. Let's talk about the medium term and possible targets

Economically, the coming week will be quite important, there will be decisions on the Fed Funds rate, US GDP and PCE.
If the rate remains unchanged and the Fed's rhetoric is tough, this could put pressure on gold, a softer policy would support the metal, as would a slowdown in GDP growth if supported by actual data. PCE data may indicate that inflationary pressures remain. If the data is better than expected, it will strengthen the chances of further Fed rate hikes, which in turn will support the dollar and reduce demand for gold.

Technically, the price is heading towards 2790 and the chance of reaching this target is quite high, but the potential for further upside after breaking the resistance is not there yet as there is no energy to do so.

A strong move of 8% (since December 18) could easily be stopped by the resistance level ahead and gold could go into correction or consolidation

Resistance levels: 2790
Support levels: 2762, 2750, 2735

Overall, expected economic data points to support for the Dollar, which could put pressure on gold. Highlights for Gold are FOMC results and GDP data, as well as unexpected deviations from the forecast in economic data, which could change the current dynamics.

What to expect from the price? Most likely, after a correction to 2762 (liquidity zone), growth will resume and the price will head towards the most important target at the moment - 2790. The one and a half month rally may end with a false breakout of 2790 and the beginning of correction. I am not talking about the trend reversal yet, as we should follow the market reaction to the general situation.

Zones of interest within the correction may be several local and several global zones:

Local targets (if bullish): 2762, 2735
Medium-term targets (if trend change is confirmed): 2714, 2689, 2643

Regards R. Linda!

RLinda

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