GOLD: Waiting for the Release of Key Economic Data

XAUUSD Gold Traders
01-07 16:23

Hello everyone! Today i want to share some macro analysis with you!

1.

$XAU/USD(XAUUSD.FOREX)$ On Wednesday, key US economic data will be released, with investors focusing on December's ADP employment change, the ISM Services Purchasing Managers' Index (PMI), and November's JOLTS job openings.

Following this, the market will focus on Friday's US December non-farm payrolls report, with an expected increase of 60,000 jobs, slightly lower than the 64,000 added in the previous month.

According to LSEG data, traders are already pricing in two Fed rate cuts this year. In a low-interest-rate environment, non-interest-bearing gold is typically more attractive.

2.

Technical Analysis: $Gold - main 2602(GCmain)$

Gold's uptrend remains intact, supported by strong upward momentum. The Relative Strength Index (RSI) is approaching overbought territory, suggesting further upside potential.

The first key resistance level for gold is $4,500. While there has been a short-term breakout, this level has not been sustained. A break above $4,500 would target the all-time high of $4,549 reached last December.

Conversely, a break below $4,450 could pave the way for a move towards $4,400. A break below $4,400 would target the 20-day moving average at $4,381, followed by $4,350.

The recommended trading strategy is to maintain buy orders.

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