Gold (XAUUSD) Steadily Ascends Towards 2715.0 Resistance Level

Market Analysis – January 10

Gold continues its struggle to recover from the sharp decline below the trendline that supported its bullish trend. The resistance level at 2715.0 remains a formidable barrier, stalling any meaningful restoration of the uptrend.

Gold Key Levels

Demand Levels: 2600.0, 2531.0, 2431.0
Supply Zones: 2715.0, 2790.0, 3000.0

Gold Long-Term Trend: Ranging

Gold’s bulls have shown renewed interest in resuming the uptrend following the price crash in November. However, the recovery has been met with significant resistance. The Stochastic indicator signaled bullish exhaustion at the swing high of 2790.0, which preceded the decline. Additionally, Bollinger Bands confirmed that the price was overbought prior to the drop.

Since the crash, buyers have demonstrated attempts at recovery, as evident in the higher low formed at 2600.0 compared to 2531.0. Despite these efforts, the resistance zone at 2715.0 has remained rigid, suppressing further bullish momentum. This resistance is further reflected in the RSI (Relative Strength Index), which has neither entered the overbought nor oversold regions since November, indicating a consolidation phase with prices trapped below 2715.0.

Gold Short-Term Trend: Bullish

In the short term, a bullish channel has formed from the support level at 2600.0, guiding the price gradually upward toward the higher timeframe resistance at 2715.0. A pullback to the support trendline of this bullish channel may offer an optimal entry opportunity for scalpers aiming to target the resistance zone at 2715.0. While the current momentum suggests a steady recovery, breaking above the 2715.0 resistance level remains critical for Gold to regain its bullish trajectory. Additionally, integrating forex signals into trading strategies can provide valuable insights for navigating the market effectively.

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