1. Overall Trend:
The price is currently in an uptrend.
2. Recent News Impact:
The support level has been broken on the news, but there’s no consolidation yet.
3. Expectation:
Anticipating a return to the support level and a continuation of the recovery.
4. Target:
Targeting a resistance level of 1824.82
5. Recent FOMC Minutes (January 5, 2022):
The minutes suggest a strengthening of the hawkish rhetoric of the Fed.
Recognition that inflation has been higher, more persistent, and more widespread than previously anticipated.
6. Market Conditions:
Gold has experienced a decline, possibly influenced by a rebound in equity markets.
Subdued USD price action is supporting the dollar-denominated metal.
Investors are cautious ahead of the US NFP (Non-Farm Payrolls) report.
7. Comments from St. Louis Fed President James Bullard:
Bullard mentioned that the Fed could raise rates as soon as March.
Indication that the Fed is in a good position to take more aggressive steps to control inflation.
8. Support and Resistance Levels:
Resistance Levels (R):
- R2: 1804.61(180*)
- R3: 1815(90*)
- R4: 1829.58
- R5: 1835.58
Support Levels (S):
- S1: 1782.12
- S2: 1768.89
- S3: 1748.98
- S4: 1732.41
- S5: 1727.00
9. Summary:
Given the current uptrend in gold, the expectation is for a return to the support level and a continuation of the recovery. The recent hawkish stance from the Fed, especially regarding inflation, may influence market sentiment. The target of 1824.82 aligns with the analysis.
However, it’s crucial to monitor the impact of upcoming economic data, especially the US NFP report, as it could introduce volatility to the market. Additionally, keep an eye on any further developments in the Fed’s policy and global economic conditions. Always employ risk management strategies to protect against unexpected market movements.
