Gold remains near multi-month highs, facing resistance around the $1,940 area. The $1,930 zone, still is a magnet area. Markets continue to wobble without a clear bias. US yields moved up and down, unable to confirm a direction. The US 10-year yield moved around 3.45% and the 2-year around 4.12%. The lack of direction in yields contributed to gold holding in ranges. On Thursday, the US will release the preliminary reading of Q4 GDP. Consensus sees the economy expanding at a 2.6% annualized rate and the Core PCE rising by 5.3%. Also on Thursday, the Chicago Federal Reserve releases the National Activity Index and the Labor Department the weekly jobless claims report.

The daily and the four chart for the XAU/USD favors a bullish continuation. A firm consolidation well above $1,935.00 should open the doors to an upward extension. On Wednesday, the yellow metal approached multi-month highs and the $1,940 level and then pulled back. Corrections are limited suggesting bullish potential remains in place.

Gold Price is near the recent top, holding above relevant short-term support levels and unable to move far from the $1,930 area that convergences with the 20-Simple Moving Average in the four-hour chart. A firm break above recent highs would target the $1,950 zone; above the next relevant resistance awaits at $1,966. Another failure at $1,940 would keep XAU/USD in the current range. The critical support stands at $1,920 a horizontal level and also an uptrend line. A slide below the mentioned level should point to a deeper correction toward $1,900.

Intact hawkish momentum; trading setup on intraday market

Jan 25 2023