GOLD → Previously untouched terrain. Correction or growth?

Updated

is a pioneer. The price is testing new highs in a new, previously untouched zone. High interest in the metal, rumors and crisis leads to the fact that the growth of gold outpaces the growth of the dollar.

Dollar Index (D1) Breakout of resistance and news

The dollar is also rising. The price of the index has been supported by regulators for an extended period of time. The price is moving into a new range. What is interesting is that against the background of USD appreciation, gold is also rising in price. But this has its own reasons: the expectation of a rate cut, according to Powell, 3 rate cuts are expected in 2024. High interest to gold as a hedge asset, as well as the huge buyout of metal by central banks, which only fuels the price to strengthen.

Gold (H1). Key levels and technical situation

Technically, gold is at its highs. On D1 the price is testing the exit from the existing price channel. The closing of the session on Friday indicates that the market will try to move higher.

The only thing that confuses me is the price going outside the global channel on the background of distribution, the metal, from the technical point of view, has no potential to overcome this boundary from the first time. A pullback or consolidation is possible.

It is worth paying attention to two price levels: 2235 and 2222. A breakthrough of the upper boundary with the subsequent consolidation of the price above this level will continue the growth. The expected target in this case could be 2250.
A break of the lower level may activate the liquidation of buyers, which will form a correction to 2212, 2200

Regards R. Linda!

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