Gold: support focus on 1827-1835

Brief analysis of fundamentals:

On Tuesday (January 3), deteriorating U.S. economic data cast a cloud of dust on the economic outlook, and the market’s risk aversion resumed. The U.S. dollar index once rose to 104.86, closing up 1%. The 10-year U.S. bond yield expanded to more than 10 basis points. It fell to 3.752% from around 3.879%. The decline in U.S. bond yields boosted the price of gold, and spot gold continued to rebound, once approaching $1,850, a new high in more than half a year since mid-June last year, closing up 0.89%. Looking ahead, we will focus on the minutes of the December monetary policy meeting released by the Federal Reserve during the day. If the minutes reiterate the aggressive monetary policy stance, it may put pressure on gold prices.

Spot gold XAUUSD 1 hour chart

Brief technical analysis:

According to the 1-hour chart, the price of gold rose to a new high of $1,860 and then fell back. The lowest dipped to around $1,827 and then stabilized and counterattacked. Stay bullish above 1827 within the day, with a target around 1850-1878.

Resistance level: 1850.00 1878.00

Support level: 1827.00 1836.00

Trading strategy: Bullish above 1827.00, target 1850.00 1878.00

Alternative strategy: bearish below 1827.00, target 1815.00 1805.00