On Wednesday (January 8), during the early European session, spot Gold maintained a mild rebound trend, with the current gold price at $2652 per ounce. FXStreet Senior Analyst Dhwani Mehta published an article on Wednesday analyzing the technical trends of gold prices.

Mehta wrote that in the early session on Wednesday, gold prices consolidated around $2650 per ounce after a rebound, awaiting the release of the USA ADP employment report and the Federal Reserve's December meeting minutes to prepare for the next round of increases.

At 21:15 Peking time on Wednesday, the USA ADP employment number change data for December will be released. This data is often referred to as the "mini non-farm payrolls."

Authoritative media surveys indicate that the USA's December ADP employment is expected to increase by 0.14 million. Previously, the USA's November ADP employment increased by 0.146 million.

At 03:00 on Thursday, Beijing time, the USAthe Federal Open Market Committee(FOMC) will release the minutes of the December monetary policy meeting. These minutes may reveal more clues about the future policy path, especially regarding whether the Federal Reserve has truly turned hawkish.

Mehta warned that unexpectedly strong ADP employment data and hawkish Federal Reserve meeting minutes could trigger hawkish bets on the Federal Reserve, negatively impacting gold prices.

At the meeting in December last year, the Federal Reserve lowered interest rates by 25 basis points as expected, and officials predicted only two rate cuts in 2025. Federal Reserve Chairman Powell stated that further adjustments would depend on the trajectory of inflation.

How to trade gold?

Mehta pointed out that the daily chart shows a 14-day.Relative Strength Index(RSIMaintaining moderate stability, slightly above the 50 level, indicates that the upward tendency of Gold prices remains unchanged.

Gold prices closed at the 50-day mark on Tuesday.Simple Moving Average(SMA) Above $2646 per ounce, currently, Gold price is holding this level.

Mehta stated that Gold buyers must break through the strong resistance level of $2665 per ounce to restore the recovery trend from last month's low of $2583 per ounce.

If the Gold price moves further upward, the high points of $2693 per ounce on December 13 and $2700 per ounce will challenge bearish commitments.

(Spot gold daily chart source: FXStreet)

On the other hand, Mehta added that if the Gold price falls below the 50-day moving average, the next support will be around $2634 per ounce, where the 21-day and 100-day moving averages converge. If the Gold price breaks below the latter, it may target Monday's low of $2615 per ounce.

After that, the last line of defense for Gold buyers is at the low of $2596 per ounce on December 30.

At 16:19 Peking time, spot Gold is quoted at 2651.71 USD/ounce.