Strong gains for gold as inflation comes back into view
Gold was among the best performing major instruments in the week ending 10 January, on track to deliver its strongest weekly gains in about two months. New tariffs set by the incoming Republican government of the USA and rising inflation are both key factors in focus.
If the price manages to break above the psychological area of $2,700, the next main resistance seems to be $2,720. This area has been tested twice unsuccessfully in the last two months. A breakout from there immediately seems less favourable because repeated tests are usually weaker and the price is very close to overbought based on the slow stochastic and Bollinger Bands.
The 100 SMA around $2,650 could be an important short-term dynamic support having functioned as such in November until being broken spectacularly on 18 December. Overall gold’s shine is likely to continue in the near future but traders need to monitor 15 January’s American inflation for surprises.
This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.
If the price manages to break above the psychological area of $2,700, the next main resistance seems to be $2,720. This area has been tested twice unsuccessfully in the last two months. A breakout from there immediately seems less favourable because repeated tests are usually weaker and the price is very close to overbought based on the slow stochastic and Bollinger Bands.
The 100 SMA around $2,650 could be an important short-term dynamic support having functioned as such in November until being broken spectacularly on 18 December. Overall gold’s shine is likely to continue in the near future but traders need to monitor 15 January’s American inflation for surprises.
This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.
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