Gold Continues its Upward Trend, Approaching Recent High of USD 2070【December 27, 2023】

Fundamental Analysis

• The US stock market continues to rise, bolstered by expectations of lower US interest rates.
• Gold sees a strong rise, influenced by the weakening US dollar and declining interest rates.
• Gold is approaching its recent high of USD 2070.

XAUUSD Technical Analysis

Analyzing the daily chart of gold prices. Currently, gold is moving within an ascending parallel channel, with the central line acting as support.
This uptrend is heavily influenced by the clear trend of a weakening US dollar and declining interest rates.
The RSI rebounding at 50 indicates a strong and ongoing upward trend. The recent high of USD 2070 is expected to be a significant resistance level, with a focus on its proximity to the central line. With a weakening dollar likely to prevail into 2024, gold is expected to pursue even higher values.

Day Trading Strategy (1-Hour Chart)

Analyzing the 1-hour chart of gold prices. Currently, gold has broken out of a ranging market and surpassed the resistance level of the USD 2060s. Breaking above the USD 2070 high seems imminent.
The rising lows and RSI positioned at 61 suggest the continuation of the upward trend. Breaking above USD 2070 could lead to reaching new price levels between USD 2090 and 2100.
Day trading approach: buy on dips. Plan to enter a buy position near USD 2060, with a profit target of USD 2073, and set a stop loss around USD 2050.

Support and Resistance Lines

Upcoming resistance lines to consider:

USD 2070: Recent high.
USD 2053: Daily Ichimoku Cloud baseline.

Market Sentiment

XAUUSD Sell: 47%, Buy: 53%

Today’s Important Economic Indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.