Gold is still waiting for a signal to move 24/1/2024

The technical outlook for gold has experienced little change, with the precious metal trading within a narrow range for the third consecutive session, bound by support near 2016 and resistance around 2034.

In a detailed analysis based on the 240-minute time frame chart, the price has found stability above the 2016 support level, marked by the 38.20% Fibonacci retracement, providing a supportive foundation. However, the presence of the 50-day simple moving average acts as a barrier, hindering significant upward movements.

Given the conflicting technical signals persisting for three sessions, a cautious approach is favored, and monitoring price behavior is preferred to identify high-quality trading opportunities. The following scenarios are considered:

1. Upside Scenario: Immediate consolidation above 2016 and a clear breach of the 2034 resistance level could enhance the likelihood of a temporary rise towards 2044 and 2050. Further gains may extend towards 2065.
2. Downside Scenario: A drop below 2016, confirmed by the closing of at least a one-hour candle, renews the chances of resuming the downward trend. Initial targets include 2009, with potential extensions towards 2000. A breach below 1997 would intensify the bearish momentum, opening the path directly towards 1989.

Investors are advised to exercise caution today as high-impact economic data is expected from the American, French, and German economies, including preliminary readings of the services and manufacturing PMI indices. Additionally, the preliminary reading of the services and manufacturing PMI index from Britain and the Canadian interest rate decision and the Bank of Canada press conference are events that may contribute to increased volatility in the market.

Cautionary Notes:

• Risk Level: High
• Geopolitical Tensions: Ongoing geopolitical tensions contribute to a high-risk environment, and investors may experience increased price volatility.

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: 2016.00	R1: 2034.00
S2: 2009.00	R2: 2044.00
S3: 1998.00	R3:  2052.00