Gold Weekly Price Analysis – January 25
Gold price may continue its bullish movement and the price may penetrate the resistance level of $1,591and expose the $1,643 price level. In case the Bulls defend the $1,591 price level, Gold may start a consolidation mode.
Resistance levels: $1,591, $1,643, $1,690
Support levels: $1,539, $1,510, $1,478
XAUUSD Long-term Trend: Bullish
On the long-term outlook Gold is bullish. The yellow metal has being on the bullish trend for many days. The resistance level of $1,591 was reached on 20 January but the Bears prevented further increase in price. The price declined to retest the support level of $1,539, the just mentioned level holds the price and the Bears couldn’t penetrate the level downside. Last week, XAUSD price slowly increase towards the former high of $1,591 price level.
There is a repulsion of price from the demand level of $1,539, the price retain its trading above the 21 periods EMA and the 50 periods EMA which connotes that the Bulls are still in control of the Gold market. Gold price may continue its bullish movement and the price may penetrate the resistance level of $1,591and expose the $1,643 price level. In case the Bulls defend the $1,591 price level, Gold may start a consolidation mode. The Relative Strength Index period 14 is at 70 levels and the signal lines turning upside which indicates buying signal.
XAUUSD Medium-term Trend: Ranging
Gold is ranging on the 4-hour chart. The price was consolidating two weeks ago. The Bears are yet to break down the support level of $1,559 level due to low momentum. The Bulls’ momentum remains weak and this led to ranging movement in the Gold market.
The price is hovering around the 21 periods EMA and 50 periods EMA in which the two EMAs are close to each other as an indication of ranging market. Relative Strength Index period 14 is above 60 levels with the signal lines pointing up to indicate buy signal.
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