XAU technical analysis at the beginning of the new year
Updated
Conflicts in the Middle East and central bank buying led by China will also boost XAU's appeal next year, analysts predict.
According to the World Gold Council, this year the Fed is expected to cut about 40-50 basis points in long-term interest rates. After cutting interest rates by 75-100 points, gold prices may increase by 4%.
Although the Fed has not yet ruled out another rate hike, the market has already decided that interest rates will fall next year. This is shown by the sharp decrease in government bond yields and the USD. Therefore, even in the absence of fresh bullish momentum, the USD downtrend should still keep XAU/USD supported.
Gold is likely to correct slightly before continuing its current bullish structure, with the first level of support located around the $2,010 area, beyond that at the $1,956 threshold.
According to the World Gold Council, this year the Fed is expected to cut about 40-50 basis points in long-term interest rates. After cutting interest rates by 75-100 points, gold prices may increase by 4%.
Although the Fed has not yet ruled out another rate hike, the market has already decided that interest rates will fall next year. This is shown by the sharp decrease in government bond yields and the USD. Therefore, even in the absence of fresh bullish momentum, the USD downtrend should still keep XAU/USD supported.
Gold is likely to correct slightly before continuing its current bullish structure, with the first level of support located around the $2,010 area, beyond that at the $1,956 threshold.
Note
SELL XAU 2070TP1: 2060
TP2: 2050
SL: 2080
Note
Running + 50 pipsNote
running + 90 pipsNote
HIt TP1, running + 140 pipsNote
Hit TP2+ 200 PipsNote
BUY XAU 2054 - 2052TP1: 2064
TP2: 2074
SL: 2042
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