Gold Price Analysis: XAU/USD is still in positive mode.

24 בינו׳ 2022

Several reasons are playing behind the rising of gold prices. The main catalysts for rising gold prices are omicron concerns, geopolitical factors, stock crashes, and downbeat yields.

Today, we have seen the Asian stock market slip and yields drop. But, on the other hand, a Russian attack on Ukraine is a growing risk.

This week we have federal open market committee meeting minutes. The market is expecting a hawkish statement. If the FED delivers a hawkish statement, this may only stop the bias of rising gold. Otherwise, I don't see any other fundamental factors that can stop the bias of rising gold prices.

Technically gold is also in an uptrend. Last time the strongest support was the $1828/1830 zone price. And the gold price is still holding above the support zone. But in the daily chart, gold is hovering below the trendline resistance.

So, it is a bit hard to decide where to buy the gold in this place or wait for more confirmation.

There is no doubt that fundamentally gold is still in mode, but technical analysis says we should wait for more confirmation.


Gold Daily Chart

We can buy at the zone if we find gold near the support zone, like the $1830 price zone. For example, in the H1 chart, trendline support identifies the $1830/1815 price zone. So, if we can buy from the particular price zone, we can make some pips.

I always recommend trading in a higher timeframe. The higher timeframe we will use, the better result we will get.

The H1 chart shows that $1815 is the last support. And breaking below $1815 may change the trend. But if you see the H4 or Daily chart, we find that $1800 is major support. So as long as gold prices are above $1800, it will still be uptrend. That's why I always suggest seeing and trading in daily or H4 charts.

The H1 chart is forming another bullish flag, breaking above $1843/1848. We will get the confirmation. So, if we buy at $1843, our first target will be $1848. As $1848 is a trendline resistance zone and strong resistance level.

So, we should wait till the market breakout. Then, if the gold price breaks above the $1848/1850, we must continue our buy trade, and our second target should be at the $1858/1860 price zone. And final target to the upside is the $1875 price zone.