GOLD → False breakdown of 2070. Rollback to the end of the year

25 de dez. de 2023

XAUUSD strengthened quite actively last week. The price is retesting the resistance at 2069.8 formed in August 2020. There are reasons for further growth, but also reasons for further pullback. Let's see



On D1 we can see that in the frame of distributive movement the price tests the resistance 2069.8 and forms a false breakdown, which activates a rather strong sell-off. A few hours before the end of the session the price loses 0.85%.
In the coming week there is no news except Initial Jobless Claims, analysts are expecting an increase in claims from 205K to 210K. The GDP data weakens the dollar, the Fed's stance also suggests a possible rate cut next year, and in addition the inflation data. The overall fundamental background is unfavorable for the DXY and we see a decline in the index, which in the medium term is favorable for the gold market.

Technically, there are a few days to go until the end of 2023, volatility and liquidity may decrease, but since Friday ended with a false break of resistance zones (2069.8, 2055), the current correction may last. The price may reach the support area before further growth.
It is worth paying attention to the following levels:

Resistance: 2055, 2050, 2065, 2069, 2075
Support: 2047, 2040, 2030, 2015

I advise you to study the work schedule of your brokers for Christmas and New Year holidays. Each broker determines its own regulations and therefore on these days some companies may work and others may not.

Merry Christmas! Have a great holiday!
Regards R. Linda!