Fundamental Analysis

• Gold temporarily declined, hitting a low of USD 2,744.
• The U.S. Federal Reserve decided to keep interest rates unchanged and stated that they are not in a hurry to cut rates.

XAUUSD Technical Analysis

Analyzing the daily chart of gold, the price dropped to USD 2,744 following the Fed Chair’s remarks but formed a pullback and rebounded. Overall, the upward trend remains intact.

Gold faces strong resistance at USD 2,772, and there is a possibility of reaching new highs in February. Since the beginning of the year, the uptrend has continued, maintaining a position above the conversion line. The current trend remains strong.

The underlying factors include an increasing trend of central banks holding gold as foreign exchange reserves, strong demand as a hedge against U.S. monetary policy risks, and overall economic uncertainty.

The RSI stands at 64, indicating a stable upward trend.

Day trading strategy (1 hour)

Analyzing the 1-hour chart of gold:

• A rebound from the 52-period moving average confirms a buying opportunity.
• Fibonacci Expansion analysis indicates that 100% corresponds to USD 2,780, while 161.8% aligns with USD 2,800.

The day trading strategy remains bullish. Since the price has broken above the Ichimoku cloud, the target is set at USD 2,772. A stop-loss should be placed if the price falls below the recent low of USD 2,744.

Support/Resistance lines

Key support and resistance lines to consider:

• USD 2,744 – Recent 1-hour chart low

Market Sentiment

XAUUSD: Sell: 59% / Buy: 41%

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.