#GoldTechnical analysis.#24K99 News: On Thursday (January 16), during the Asian market, spot Gold maintained a strong trend, with the price currently around $2697 per ounce. FXStreet's chief Analyst Valeria Bednarik wrote an analysis on Gold's Technical Indicator outlook.
Bednarik stated that Gold maintains a Call momentum, aiming to continue rising towards record highs.
Spot Gold closed significantly up $19.20 on Wednesday, an increase of 0.72%, reported at $2696.18 per ounce.
On Thursday at 21:30 Beijing time, the USA Census Bureau will publish the retail sales data for December, which is expected to trigger significant market movements today.
Authoritative media surveys show that the month-on-month retail sales rate in the USA for December is expected to grow by 0.6%, compared to an increase of 0.7% in November.
The USA retail sales data is notoriously known as 'terrifying data' because it usually has a significant impact on financial markets and is likely to affect the trends of USD, Gold, and other Assets.
Analysts point out that if the retail sales data in the USA falls short of expectations, the US dollar may suffer, thereby driving gold prices further upward; on the other hand, a stronger-than-expected retail sales report could lead to a pullback in gold prices.
In addition, at 21:30 Peking time on Thursday, the data for the number of initial unemployment claims in the USA will be released. It is expected that the number of initial unemployment claims for the week of January 11 will jump from 0.201 million to 0.21 million.
FXStreet Analyst Christian Borjon Valencia stated that on Thursday, the financial markets will focus on the USA retail sales, initial unemployment claims data, and speeches from Federal Reserve officials.
Short-term technical outlook for gold
Bednarik wrote that the daily chart for gold shows that gold prices maintain a bullish tone as they continue to develop above all their moving averages. The 20-daySimple Moving Average(SMA) and the 100-day moving averages converge around $2635 per ounce, showing no directional strength, but forming dynamic support. Meanwhile,technical indicatorsMoving upward within an active level reflects that buyers still hold control.
Bednarik added that in the short term, based on the 4-hour chart, the outlook for Gold is neutral to Call. The gold price quickly rebounded after declining toward the flat 20-period SMA, which currently provides dynamic Resistance around $2677 per ounce. The longer-term moving averages are rising below the aforementioned short-term moving average. Meanwhile, the Technical Indicators lack strong directional intensity, with the momentum indicator hovering at the level of 100.Relative Strength Index(RSIIt is around 60.
(Source: FXStreet)
Valeria Bednarik provides the latest key support and resistance levels for gold price:
Support levels: $2675.00/ounce; $2660.70/ounce; $2645.15/ounce.
Resistance levels: $2697.90/ounce; $2725.00/ounce; $2738.15/ounce.
At 12:12 Peking time, spot Gold is quoted at $2697.24/ounce.
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