Gold Retreats From the Perennial Peak, Stable Beneath the Price Level of $ 1,600

XAUUSD Price Analysis – January 8

Gold has reduced some of its early strong gains and now seems to have stabilized beneath the $ 1,600 price levels. The yellow precious metal has added gains in its recent achievements and spiked to the highest level since March 2013 during the Asian session on Wednesday amid growing geopolitical tensions in the Middle East.

Key Levels
Resistance Levels: $ 1640, $ 1611, $ 1625
Support Levels: $ 1572, $ 1517, $ 1445

XAUUSD Long term Trend: Bullish

The conditions of extreme overbought on the daily chart seemed to trigger some aggressive long spin-up trading amid a dramatic intraday turn in the mood of global risk.

Some subsequent weakness beneath the level of $ 1,572 can now be seen as a key trigger for bearish traders and provide additional bearish pressure amid the likely disappearance of demand for safe-haven in the long term.

XAUUSD Short term Trend: Bullish

On the other hand, the pullback level of $ 1580-82 now seems to act as an immediate resistance, above which the bulls are likely to aim back to restore the round $ 1,600 price level.

Before the indicated price level, intermediate resistance levels are near the price levels of $ 1,595.39.

Instrument: XAUUSD
Order: Buy
Entry price: $ 1572
Stop: $ 1517
Target: $1640

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