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Gold Price Rally Takes Break, Dips Turn Attractive

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Aayush Jindal

Key Highlights

  • Gold rallied above the $2,120 and $2,180 resistance levels.
  • It traded below a key rising channel with support at $2,170 on the 4-hour chart.
  • EUR/USD and GBP/USD started a downside correction.
  • Bitcoin price extended its rally above $72,000.

Gold Price Technical Analysis

Gold prices started a fresh increase from the $2,050 support against the US Dollar. The bulls cleared the $2,120 resistance to start a strong rally.

The 4-hour chart of XAU/USD indicates that the price settled above the $2,140 level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).

The bulls were able to pump the price above the $2,165 and $2,180 levels. Finally, the price traded close to the $2,200 level before the bears appeared. A high was formed at $2,195 and there was a minor downside correction.

There was a move below the $2,180 level. The price traded below a key rising channel with support at $2,170 on the same chart. Initial support is near the $2,145 level.

The first major support sits at $2,120. Any more losses might call for a move toward the $2,090 level or the 50% Fib retracement level of the upward move from the $1,984 swing low to the $2,195 high in the coming days.

Any more gains might open the doors for a test of $2,050. On the upside, the price might face resistance near the $2,180 level. The main resistance is now forming near $2,195 and $2,200.

Looking at Bitcoin, there was a strong upward move above the $70,000 and $72,000 levels. The next key resistance sits at $75,000.

Economic Releases to Watch Today

  • UK Total Trade Balance for Jan 2024 - Forecast £-2.50B, versus £-2.603B previous.
  • UK GDP for Jan 2024 (MoM) - Forecast +0.2%, versus -0.1% previous.
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