Market Analysis – January 4th
Gold faces selling pressure as bulls maintain resilience. XAUUSD has been experiencing selling pressure as sellers pierce through important key levels. The bulls have shown determination and have managed to keep the struggle going. However, it is only a matter of time before the selling traders potentially drive the price down to the 2014.790 price zone.
Gold Market Levels
Resistance Levels: 2088.810, 2014.790
Support Levels: 1925.400, 1865.970
Gold (XAUUSD) Long Term Trend: Bullish
In the week leading up to the new year, the buyers were still making efforts to push the price higher. However, the bullish momentum fell short of reaching the significant level of 2100.000.
This provided an opportunity for sellers to take control as the market entered the new year. Currently, the market remains in a state of weak bullish strength. Therefore, it is possible that the sellers may drive the price down towards the 2014.790 level.
However, the buyers are likely to gather strength at this key level and continue their bullish momentum. The Stochastic Oscillator on the daily chart is showing a lower charge, indicating a potential decrease in selling pressure.
The Chaikin Money Flow indicator provides price signals that show the current market direction. Buyers would benefit from a stronger flow to counter the selling pressure that has been building up recently.
Gold (XAUUSD) Short Term Trend: Bearish
In the short time frame, the bears are making a statement as they dominate the market. The buyers have lost some vital strength, but there is a possibility for them to stage a comeback later on. Given the current struggle, 2024 is expected to be an interesting year for gold.
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