FX.co ★ XAU/USD, GOLD

Technical Analysis of Gold During the last trading session, gold found support and resumed its upward trend, breaking through key resistance levels. The US dollar index stabilized near 100 on Wednesday, reaching a three-month high of 100.25, becoming the longest-lasting in the country's history. The daily chart shows a key turning point near 100.07, with possible support at 99.88 and 99.55 and resistance at 100.39 and 100.58. These factors determine the dollar's potential trading range in the coming trading days. Economic data and publications in the US also contributed to a further rise in gold prices. Disappointing business activity indices (both the US Manufacturing Purchasing Managers' Index and the Caixin Purchasing Managers' Index in China fell sharply below 50) confirmed a slowdown in global industrial activity and strengthened market confidence that the Fed will be forced to continue its accommodative policy. Another catalyst was the resumption of active gold purchases by the People's Bank of China. According to indirect estimates, the People's Bank of China increased its gold reserves by 15-20 tonnes between November and December, the largest monthly increase in nearly six months.

This further confirms market expectations for further gold price gains. Prices once again encountered strong resistance near 4243, with strong selling pressure persisting, and prices are consolidating below this level. To resume growth, prices need to consolidate above the current price range of 4146, a key support zone where strong buying interest is expected. A retest of this area followed by a rebound could trigger the next wave of upward momentum, targeting the 4312-4379 range. A break below the support level and a further decline below the pivot point of 4057 would signal the end of the current uptrend.