In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the XAUUSD for 2nd January 2024.
Key Takeaways
- Geopolitical tensions: Investors are concerned about whether geopolitics in the Red Sea will continue to escalate. Britain is considering launching air strikes against Houthi armed targets after the US Navy sank three Houthi armed boats. Be wary of unusual fluctuations in crude oil and gold this week.
- US Labor force data: The United States will release a series of labor force data this week, of which the December ADP employment number on Thursday and the December non-farm payrolls report on Friday are the focus of the market. If inflation expectations continue to fall, Federal Reserve will begin cutting interest rates in the first quarter. The depreciation of the US dollar may support the rise of gold prices to a certain extent.
Technical Analysis
Monthly Chart Insights
- Stochastic Oscillator: The fast line of the indicator slows down and is about to cross the slow line, suggesting that the current upward trend of gold prices will slow down in the short term or may be adjusted.
- Price Action: The price of gold finally closed in December with a doji bar, but did not break the previous high. Theoretically, the long and short markets are anxious, and the probability of subsequent downward pressure is high.
Daily Chart Analysis
- Stochastic Oscillator: The indicator has entered the oversold zone. It has been entangled last week and is about to issue a short signal, suggesting that further rises in the current gold price may be suppressed.
- Price Action: After the gold price showed bearish engulfment above the red 7-day moving average, it still did not fall below the moving average support. Today’s market trend is very important. If the gold price falls below the moving average support, the gold price may have a deep correction.
Pivot Indicator
- According to the trading central in Ultima Markets APP, the central price of the day is established at 2057.00,
- Bullish Scenario: Bullish sentiment prevails above 2057.00, first target 2074.00, second target 2080.00;
- Bearish Outlook: In a bearish scenario below 2057.00, first target 2051.00, second target 2047.00.
Conclusion
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Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
