It was mentioned in previous reports that the declines of the yellow metal will be corrective declines that do not negate the bullish scenario in the long term, and despite the corrective drop that it recorded yesterday, prices did not stabilize below the $1915 level, which was the main condition for continuing the bearish correction.
Gold is currently trading around the $1941 level, breaching the $1937 resistance, supported by receiving support from the 61.8% Fibonacci retracement level and the bullish trend line shown on the chart.
Technical analysis of gold Jan 24-
On the other hand, the markets are watching several data, the most important of which are the purchasing managers’ indices in the region, the United States, and the United Kingdom. If the data shows more slowdown and comes below the 50 level, gold is expected to continue rising to the medium-term target at $1940, followed by the next resistance level at $2000, which is the target. The long-term.--
Therefore, I advise you to follow these data on the economic calendar.
Gold’s rise also comes supported by the US Federal Reserve’s steps to slow down the rate hike. It is expected that the Fed will raise interest rates by 25 basis points after it was raised by 50 basis points last December, after it raised it over the course of 2022 by 75 basis points four times in a row.