Gold: bullish above 1784

Basic analysis:

On Monday (December 26), affected by the Christmas holiday, exchanges in major western countries were closed for the holiday, and trading of precious metals, US crude oil and foreign exchange contracts under CME was suspended for the whole day. Last Friday, the US dollar index fluctuated in the 104 range. After the US PCE was announced, the US index rose and set a new daily high. The US treasury bond yield accelerated to rise in the intraday. However, the University of Michigan survey showed that inflation expectations fell back more than expected. Finally, the US index fell slightly by 0.07% and spot gold rose by 0.32%.

Spot gold XAUUSD 4-hour chart

Technical analysis:

The 4-hour chart shows that the gold price was supported near 1784, the low point before the gold price callback, and the MACD volume could shrink sharply near the zero axis, indicating that the short-term trend of the market has entered consolidation. The support is located near 1784. If the level does not fall below in the day, the market is expected to rebound and look up near 1820. If the level falls below, the short position trend is established, and look down near 1770-1750.

Resistance level: 1805.00 1825.00

Support position: 1783.00 1770.00

Trading strategy: bullish above 1784.00, target 1805.00 1825.00

Alternative strategy: bearish under 1684.00, target 1770.00 1750.00