Gold touches targets, eyes are on the Fed 31/1/2024

In the previous trading session, gold exhibited a strong upward trend, meeting the initial targets outlined in the preceding technical report at $2040 and $2048, reaching its highest level at $2048 per ounce.

From a technical standpoint, the $2048 level exerted negative pressure on the price, prompting a retest of $2029. A closer examination of the 4-hour time frame chart reveals that the simple moving averages continue to support the price from below, providing a positive incentive. This coincides with the efforts of the Stochastic indicator to alleviate the prevailing negativity.

Our positive outlook is maintained as long as intraday trading stays above $2026 and, more importantly, above the pivotal support floor at $2026, representing the 38.20% Fibonacci retracement. The immediate target remains $2048, and a breach of this level would enhance and accelerate the strength of the daily upward trend, with anticipated stations at $2056 and $2065.

It’s crucial to note that the realization of the proposed bullish scenario hinges on the stability of trading above $2016. A breach of this level could thwart the upward momentum, subjecting the price to significant negative pressure and initiating a corrective decline, with the official target at $1977, representing a 50.0% correction.

Cautionary Notes:

• Risk level is high.
• Today, we anticipate the release of high-impact economic data from the American economy, including changes in private non-agricultural sector jobs, the interest rate, the Federal Reserve Committee statement, and the press conference of the Chairman of the Federal Reserve. Sharp price fluctuations are likely during the news release.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart

S1: 2026.00	R1: 2045.00
S2: 2018.00	R2: 2056.00
S3: 2007.00	R3:  2065.00