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Gold Strengthens—Is a $3K Breakout Imminent?

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Aayush Jindal

Key Highlights

  • Gold started a fresh surge above the $2,950 resistance and traded to a new record high.
  • A key bullish trend line is forming with support at $2,930 on the 4-hour chart.
  • Bitcoin is still struggling to clear the $100,000 resistance zone.
  • EUR/USD failed to settle above the 1.0535 resistance zone.

Gold Price Technical Analysis

Gold prices started a fresh rally above the $2,900 resistance. The bulls pumped the price above the $2,950 level and the price traded to a new record high.

The 4-hour chart of XAU/USD indicates that the price remained in a positive zone above the $2,920, the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours).

The current price action suggests a high chance of more gains above the $2,965 level. On the upside, immediate resistance is near the $2,972 level. The next major resistance sits near the $2,985 level.

A clear move above the $2,985 resistance could open the doors for more upsides. The next major resistance could be $3,000, above which the price could rally toward the milestone level at $3,050.

On the downside, initial support is near the $2,930 level. There is also a key bullish trend line forming with support at $2,930 on the same chart. The first key support is near $2,920. The next major support is near the $2,915 level.

The main support is now $2,885. A downside break below the $2,885 support might call for more downsides. The next major support is near the $2,840 level.

Looking at Bitcoin, the price attempted a recovery wave but the bears are still active below the $100,000 level.

Economic Releases to Watch Today

  • S&P/Case-Shiller Home Price Indices for Dec 2024 (YoY) - Forecast +4.5%, versus +4.3% previous.
  • US Housing Price Index for Dec 2024 (MoM) - Forecast +0.2%, versus +0.3% previous.
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