The Price of Gold Could Project Profit Above $1,900 in The Near Term
- Above the $1,825 resistance, the price of gold started to rise again.
- On the 4-hours chart, a connecting bullish trend line is developing, with support located close to $1,835.
- The EUR/USD pair may try to rise again above the 1.0700 area.
- In December 2022, the US ADP employment could increase by 150K from 127K.
Technical Analysis of Gold
Over the $1,780 mark, the gold price established a ground versus the US dollar. Once it crossed the $1,800 and $1,810 marks, the price started to rise steadily.
The XAU/USD 4-hours chart shows that the price increased above the $1,820 barrier region. Even so, the price rose above $1,850 before settling significantly above both the 100 simple moving average (red, 4-hour) and the 200 simple moving average.
After testing $1,865, the price entered a consolidation phase. On the upside, buyers may be present close to the $1,872 mark.
Near the $1,880 mark, there is the next significant barrier. If there are any further increases, the price may move towards the $1,900 resistance level, above which it may recur at the $1,920 resistance.
An early support for the downside is located close to the $1,840 mark. On the same chart, a connecting bullish trend line is also developing, with support located close to $1,835.
Near the $1,822 mark is the next significant support. Under $1,800, the gold price may find it difficult to maintain its position above the $1,780 region.
If the EUR/USD pair breaks through the 1.0700 resistance area in the upcoming sessions, it may try to increase again.
Economic News To Trade Today
- US initial jobless claims are expected to be 225K, down from the previous 225K.
- US ADP Employment Change for December 2022: 150K forecast, up from 127K in the past.
Author: Amogo Solomon
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