Gold prices started the year on defense with XAU/USD poised to close the week down more than 2% to trade at 1792 in early US trade on Friday. Prices have carved out the January opening-range between competing Fibonacci levels and the focus in the days ahead is on a breakout to offer guidance on our near-term directional bias. These are the updated targets and invalidation levels that matter on the XAU/USD weekly technical chart.
In my last Gold Weekly Price Outlook we noted that the recent XAU/USD recovery was trading into near-term resistance heading into the yearly open, “below the 61.8% retracement of the November sell-off at 1829.” The 61.8% Fibonacci retracement of the December rally now highlights support at 1783 with key support, bullish invalidation unchanged at 1754. A topside breach / close above the yearly open would shift the focus towards subsequent resistance objectives the highlighted trendline confluence near ~1855 and the 100% extension of the August rally at 1876.
This week’s gold pullback keeps the focus on the Fibonacci range between 1783-1829 – look for a near-term breakout to offer guidance with the broader outlook still constructive while above 1754. From a trading standpoint, look for an exhaustion low early in the month with a breach / close above the 2021 trendline needed to clear the way for resumption towards critical resistance at the 2021 high-close / 61.8% retracement of the 2020 decline at 1903/23. Note that a decline beyond the December low could fuel another bout of accelerated losses- stay nimble here. I’ll publish an updated Gold Price Outlook once we get further clarity on the near-term XAU/USD technical trade levels.
In my last Gold Weekly Price Outlook we noted that the recent XAU/USD recovery was trading into near-term resistance heading into the yearly open, “below the 61.8% retracement of the November sell-off at 1829.” The 61.8% Fibonacci retracement of the December rally now highlights support at 1783 with key support, bullish invalidation unchanged at 1754. A topside breach / close above the yearly open would shift the focus towards subsequent resistance objectives the highlighted trendline confluence near ~1855 and the 100% extension of the August rally at 1876.
This week’s gold pullback keeps the focus on the Fibonacci range between 1783-1829 – look for a near-term breakout to offer guidance with the broader outlook still constructive while above 1754. From a trading standpoint, look for an exhaustion low early in the month with a breach / close above the 2021 trendline needed to clear the way for resumption towards critical resistance at the 2021 high-close / 61.8% retracement of the 2020 decline at 1903/23. Note that a decline beyond the December low could fuel another bout of accelerated losses- stay nimble here. I’ll publish an updated Gold Price Outlook once we get further clarity on the near-term XAU/USD technical trade levels.