Gold: support and focus on 1785

Brief analysis of fundamentals:

After the market resumed trading on Wednesday (December 28), the U.S. dollar trend was calm. U.S. economic data was mixed. U.S. bond yields continued to decline. The reason is that the decline in gold prices may be related to the development of the epidemic in China. As one of the world's largest buyers of commodities, the market's optimism about the opening of the epidemic in China has been hit in the past 24 hours. There are rumors that the United States and other The country is considering a travel ban on Chinese travelers. This, combined with the rising number of covid cases, makes the market worried about the potential recovery of the Chinese economy after entering 2023.

Spot gold XAUUSD 4-hour chart

Brief technical analysis:

According to the 4-hour chart, the price of gold started to rebound around 1785, and the highest reached around 1830. At present, it has stopped falling around US$1796 again, and the MACD volume can begin to shrink above the zero axis, forming a departure from the previous wave. It indicates that the market or the choice of direction to enter, the current support is mainly concentrated at 1785-1796 US dollars, look at 1820-1835 around 1820-1835 in the day above 1785.

Resistance level: 1820.00 1835.00

Support level: 1796.00 1785.00

Trading strategy: Bullish above 1796.00, target 1820.00 1835.00

Alternative strategy: bearish below 1796.00, target 1785.00 1760.00