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07.02.2023 06:43 PM
Gold to exit its range soon?

The price of gold continues to move sideways in the short term. It's trapped between the 1,881 and 1,861 levels. You knew from my previous analysis that XAU/USD could bring new opportunities after making a new lower low. Still, the price failed to approach and reach the 1,861 former low signaling exhausted sellers.

Fundamentally, the most important event of the day was represented by the RBA. The Cash Rate was increased from 3.10% to 3.35% as expected. The RBA signaled further hikes in the next monetary policy meeting.

Later, the Fed Chair Powell Speaks could shake the markets as well and could bring high action on Gold as well. Tomorrow, FOMC Member Williams Speaks represents a high-impact event.

XAU/USD Seems Undecided!

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Technically, XAU/USD found support on 1,867 failing to stabilize below the 38.2% retracement level signaling exhausted sellers. Now, it has retested the median line (ml) which stands as a dynamic support.

The 1,881 former high represents the immediate static resistance level. It remains to see how it reacts around this obstacle.

XAU/USD Forecast!

A valid breakout above 1,881 activates further growth and brings new longs with a first target at the 23.6% (1,904).

False breakouts through 1,881 may announce a new drop. Still, only a valid breakdown below 1,861 activates a deeper drop and brings us a selling opportunity.

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
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