ACT Markets > Blog > Forex > Technical Analysis > Price of Gold Holding Strong in Massive Gains Near $1,910, Next is US Retail Sales

Price of Gold Holding Strong in Massive Gains Near $1,910, Next is US Retail Sales

January 18, 2023 Financial Market, Technical Analysis

Key Take-Aways

  • The price of gold began a new upward trend above the $1,900 barrier.
  • On the 4-hours chart, a significant bullish trend line is developing with support close to $1,875.
  • Over the 1.0780 support, the EUR/USD is consolidating its gains.
  • The GBP/USD exchange rate may move higher above the 1.2300 resistance level.

Price Technical Analysis of Gold

The price of gold against the US dollar developed a base over $1,850. Once it crossed the $1,870 and $1,880 marks, the price began to rise steadily.

The XAU/USD 4-hours chart shows that the price increased over the $1,892 barrier region. Even yet, the price rose beyond $1,900 and settled significantly above the 100 simple moving average (red, 4-hour) and 200 simple moving average (green, 4-hours).

After testing $1,930, the price entered a consolidation phase. On the upside, buyers may be present close to the $1,925 mark.

An early support for the downside is located close to the $1,900 mark. Near the $1,880 mark is the next significant support. On the same chart, a significant bullish trend line with support close to $1,875 is also developing.

Under $1,865, the gold price may find it difficult to maintain its position above the $1,850 region. The price of gold could decline toward the $1,820 support under the scenario mentioned.

If the EUR/USD pair breaks through the 1.092 resistance area in the upcoming sessions, it may try to increase again.

Near the $1,930 mark, there is the next significant barrier. Any further advances might push the price up to the $1,950 resistance level, above which gold could reach the $2,000 barrier.

Economic News To Trade Today

  • US Retail Sales forecasted at -0.5 versus -0.2 previous.
  • US Industrial Production for December 2022 (MoM) is predicted to decrease by 0.1% vs. the preceding 0.2%.
  • Forecasted UK Consumer Price Index for December 2022 (YoY): +10.6% vs. +10.7% in the prior period.
  • Forecasted UK Core Consumer Price Index for December 2022 (YoY): +6.6% vs. +6.3% in the prior period.
  • Forecasted Euro Zone CPI for December 2022 (YoY): +9.2% vs. +9.2% in the prior period.
Author:
Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.

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