Gold Technical Analysis – January-2-2024


In today’s comprehensive Gold technical analysis, we will first scrutinize the price action of the currency pair in the 4-hour chart. Following that, we will look into what could be next for the XAUUSD by scrutinizing the technical indicators as well as key Fibonacci levels.

Gold Technical Analysis: A Peak to December High

FxNews – The yellow metal’s upward trend slowed when the price reached the $2,088 high on December 28, 2023. This resistance level is also in conjunction with the highest closed price on the December 4, 2023, 4-hour chart. After this surge, the XAUUSD has been trading sideways ever since with the current price around $2,066.

The sideways trend is ranging between the 50% Fibonacci support ($2,058 mark) and the 61.8% Fibonacci resistance level, the $2,088 mark.

Gold Technical Analysis

Gold Technical Analysis – 4H Chart

Technical Indicators Signal Uncertainty

In the XAUUSD 4-hour chart, we notice the pair crossed below the bullish channel that could be a sign of a longer halt in the continuation of the uptrend.

Technical indicators are giving a range market signal. The RSI indicator hovers around the middle line, and the Awesome oscillator bars have been small and cling to the signal line. Both indicators show uncertainty. Interestingly, the ADX indicator’s signal clears the air. The ADX line is near the 20 level which is a transparent sign of no trend in the gold market.

Gold Technical Analysis: The Key Fibonacci Levels

Bearish scenario: The pullback from $2,088 dollars can be considered as a start of a consolidation phase. The 50% Fibonacci level plays the support to the main bullish trend which began in the middle of December 2023. If the gold price crosses below the 50% level, the decline would extend to the lower band of the bearish channel followed by the 38.2% Fibonacci support.

Bullish Scenario: On the other hand, the $2,088 resistance plays the main hurdle for the bulls. They need to break the level to pave the way to $2,109.

  • 2 January 2024
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