Thursday , 30 January 2025
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Gold Technical Analysis – Focus on the FOMC decision

Fundamental
Overview

Gold continues to pull back
from the all-time highs although it’s not clear what has been driving it in the
past few days. Despite lower real yields and a weaker US Dollar, gold couldn’t catch
a strong bid to make a new all-time high.

The market might be waiting
for a stronger catalyst to push into new highs. Tomorrow, we have the FOMC
decision where the central bank is expected to hold interest rates steady. The
focus will be on Fed Chair Powell. If he sounds a bit more dovish and optimistic
on inflation, then we will likely see gold rallying back into the highs.

Gold
Technical Analysis – Daily Timeframe

On the daily chart, we can
see that gold continues to pull back from the all-time highs with the 2721 level
being eyed as potential support.
That’s where we can expect the buyers to step in with a defined risk below the
level to position for a rally into a new all-time high. The sellers, on the other
hand, will want to see the price breaking lower to increase the bearish bets
into the 2600 level next.

Gold Technical Analysis
– 4 hour Timeframe

On the 4 hour chart, we can
see that we have an upward trendline defining the bullish momentum. The
buyers will likely lean on the trendline to position for a rally into new
highs, while the sellers will look for a break lower to target a drop below the
2721 support next.

Gold Technical Analysis
– 1 hour Timeframe

On the 1 hour chart, we can
see that we have a downward trendline defining the current pullback. The
sellers will likely lean on it to push into new lows, while the buyers will
look for a break higher to increase the bullish bets into a new all-time high. The
red lines define the average daily range for today.

Upcoming
Catalysts

Today we get the US Consumer Confidence data. Tomorrow, we
have the FOMC Policy Decision. On Thursday, we get the US Q4 GDP report and the
latest US Jobless Claims figures. On Friday, we conclude the week with the US
PCE and the US Employment Cost Index.

Watch the video below

This article was written by Giuseppe Dellamotta at www.forexlive.com.

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