Gold: support moves up to 1802

Brief analysis of fundamentals:

On Tuesday (December 27), due to the optimism of the easing of epidemic restrictions and the European Central Bank’s strong hawk release, the US dollar index was under pressure throughout the day, closing down 0.16%, and the yield of US bonds rebounded, with the yield of 2-year US bonds breaking through 4.44 intraday %, the 10-year U.S. bond yield broke through 3.86%, and spot gold rose strongly and then fell. The rise in income gold brought pressure, and eventually spot gold closed up 0.86%.

Spot gold XAUUSD 4-hour chart

Brief technical analysis:

According to the 4-hour chart, the price of gold continues to rise above 1784, and then breaks the recent high. At the same time, the MACD volume can start to increase above the zero axis, indicating that the market trend has entered a stronger range. The current support has moved up to around 1802. Above that bit look around 1820-1835.

Resistance level: 1820.00 1835.00

Support level: 1802.00 1785.00

Trading strategy: Bullish above 1802.00, target 1820.00 1835.00

Alternative strategies: bearish below 1802.00, target 1785.00 1760.00