The Price of Gold Could Project Profit Above $1,900 in The Near Term

Key Take-Aways

  • 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.
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.