Gold is Trying to Break Through The Resistance 1/2/2022

Positive movements dominated gold prices with the beginning of the first trading of this week after it successfully retested the 1780 support level, which forced the price to rebound to the upside, attacking the resistance level of the psychological barrier 1800 during the early trading of the current session.

On the technical side, the intraday movements are stable above 1797, accompanied by positive signs appearing on the RSI over the short time frames.

Signs of overbought began to appear on the stochastic indicator, which contradicts what was mentioned above, so it is better to monitor the price movement during the coming hours.

Confirming the breach of 1807 may contribute to consolidating the gains, and 1813 and 1825 may be the next price stations, while the return of trading stability again below 1790 may lead the price to the downside direction towards 1770 awaited stations.

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: 1790.00	R1: 1807.00
S2: 1779.00	R2: 1813.00
S3: 1770.00	R3:  1824.00