Gold: bullish above 1920

Brief analysis of fundamentals:

On Thursday (January 19), the U.S. dollar index closed down 0.32%, and the weakness of the U.S. dollar once again stimulated a sharp rise in gold. Spot gold stood at $1,930 and closed up 1.46%. Gold's fundamentals and technicals are in a bullish direction as recession fears, inflation and interest rate expectations continue to drive prices. In terms of fundamentals, considering that the Fed is now expected to raise interest rates at a slower pace, the probability of raising interest rates by 25 basis points at the next Fed rate decision has risen to 95.2%, and a more dovish tone will help push gold prices to continue to rise.

Spot gold XAUUSD 4 hours chart

Brief technical analysis:

Looking at the 4-hour chart, the price of gold continues to strengthen above 1900, and the MACD volume energy has also begun to re-release above the zero axis, indicating that the market has room to go higher. The current support moves up around 1920, and it continues to be bullish above 1920. Target around 1930-1950.

Resistance: 1930.00 1940.00

Support level: 1920.00 1900.00

Trading strategy: Bullish above 1920.00, target 1930.00 1950.00

Alternative strategy: bearish below 1920.00, target 1900.00 1890.00