Gold: bullish above 1847

Brief analysis of fundamentals:

On Wednesday (January 4), the U.S. dollar index once fell below the 104 mark, but boosted by the latest minutes of the Federal Reserve’s hawkish meeting, the decline narrowed and regained the 104 mark, and finally closed down 0.41%. The bet on the Fed's peak interest rate was lowered, so the yield of U.S. bonds fell for two consecutive days. The yield of 10-year U.S. bonds fell by nearly 13 basis points at one point, giving up the gains since December 23. As the U.S. dollar and U.S. debt both fell, spot gold was boosted and continued to rebound. It once soared to $1,865, the highest since June 12 last year. Under the pressure of the hawks in the Federal Reserve meeting minutes, the price of gold can still close strongly, indicating that the bulls are buying strongly, and the market outlook is expected to continue the gains.

Spot gold XAUUSD 1 hour chart

Brief technical analysis:

According to the 1-hour chart, the price of gold rose to a high of $1,860 and then fell back. It returned to around $1,847 and stabilized again for a counterattack. The MACD volume can shrink above the zero axis, indicating that the market trend may enter a short-term consolidation. The current support is further up Move to around 1840-1847, maintain bullishness above 1847 within the day, target around 1865-1880.

Resistance level: 1865.00 1880.00

Support level: 1847.00 1830.00

Trading strategy: Bullish above 1847.00, target 1865.00 1880.00

Alternative strategy: bearish below 1847.00, target 1840.00 1830.00