Gold: 1847 turned into resistance

Brief analysis of fundamentals:

On Thursday (January 5), the ADP employment data known as the "small non-agricultural" recorded an increase of 235,000, which greatly exceeded the expected increase of 150,000 and the previous value of 127,000. The U.S. labor market remains overheated, strengthening market expectations that the Fed still has room to keep raising interest rates. After the data was released, the U.S. index rose more than 0.5% at one point, and spot gold stopped its five-day winning streak, falling below $1,830 at one point and closing down 1.18%. The market outlook will focus on the non-agricultural report released this Friday. If the non-agricultural data further strengthens, it will continue to strengthen the Fed’s interest rate hike expectations, and beware of a new round of pressure on gold at that time.

Spot gold XAUUSD 1-hour chart

Brief technical analysis:

According to the 1-hour chart, after the gold price callback fell below the support of 1847, the trend formed a double-top structure, and the MACD volume was able to show a large volume below the zero axis, indicating that the short-term market has entered a short position. The current strong support of 1847 has turned into resistance. Looking at the callback, the target below is around 1825-1810.

Resistance: 1847.00 1860.00

Support level: 1825.00 1810.00

Trading strategy: bearish below 1847.00, target 1825.00 1810.00

Alternative strategy: Bullish above 1847.00, target 1865.00 1880.00