Gold: support and focus on 1915

Brief analysis of fundamentals:

On Friday (January 20), the U.S. dollar continued to weaken, and spot gold consolidated within a narrow range, and finally closed at almost par. There are more and more signs that the U.S. economy is weakening. U.S. inflation has continued to fall and has recorded a decline for seven consecutive months. The slowdown in wage growth suggests that inflation will continue to fall. Affected by weak U.S. economic data, the dollar continues to decline , gold bullish targets pointing to April 2022 highs. The probability of the Fed raising interest rates continues to decline slightly, and the weak dollar is expected to continue to be bullish for gold prices.

Spot gold XAUUSD 4-hour chart

Brief technical analysis:

Looking at the 4-hour chart, the price of gold continues to strengthen above 1900, and the MACD volume can start to re-release above the zero axis, indicating that the market has room to go higher. The current support focuses on around 1915, and continues to be bullish above 1915. The target is 1940 - around 1950.

Resistance level: 1940.00 1940.00

Support level: 1915.00 1900.00

Trading strategy: Bullish above 1915.00, target 1930.00 1950.00

Alternative strategy: bearish below 1915.00, target 1900.00 1890.00