Gold forecast on Monday 20/1/2025

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Xauusd forecast on Monday

For the analysis of XAUUSD (Gold vs. US Dollar) on Monday, January 20, 2025, here are the key points based on the latest market trends and technical indicators:

  • Price Levels: Gold is expected to open around the $2,690 per ounce mark on Monday, with a bullish bias. Support levels are anticipated around $2,678, with resistance potentially at $2,705.
  • Technical Outlook: Recent analysis indicates that gold is consolidating above the $2,600 support level, suggesting a strong foundation for potential upward movements. The market is watching for a breakout above $2,705, which could signal an extremely bullish trend. Conversely, if gold fails to hold above $2,678, there might be a sharp correction.
  • Market Sentiment: The sentiment around gold remains positive due to ongoing geopolitical risks, potential inflationary pressures, and the expectation of dovish monetary policy from the Federal Reserve. This environment bolsters gold’s position as a safe-haven asset.
  • Economic Influences: Investors are particularly attentive to US economic indicators like the Consumer Price Index due this week, which could sway gold prices. A higher-than-expected CPI might lead to a stronger dollar, potentially putting downward pressure on gold, while a lower CPI could propel gold prices higher.
  • Trading Signals:
    • Buy Signal: If gold holds above $2,678 with a clear breakout above $2,705, traders might look to enter long positions, targeting levels around $2,710 or higher.
    • Sell Signal: A break below $2,678 could signal sellers to take action, with targets potentially at $2,650 or lower, depending on the momentum of the sell-off.
  • External Factors: The market is also sensitive to developments regarding Donald Trump’s policies, considering the upcoming inauguration on that Monday. Any indication of his administration’s approach to trade, tariffs, or international relations could directly impact gold prices.
Xauusd Monday analysis
XAUUSD

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