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.
- Euro gains against British Pound as Burnham’s fiscal stance weighs
EUR/GBP gains on Tuesday as doubts over the UK’s fiscal outlook weigh on the British Pound (GBP) following Andy Burnham’s appointment as Prime Minister. At the time of writing, the cross trades around 0.8527, extending its gains for a fourth consecutive day. UK fiscal jitters cap Pound gains as banks see EUR/GBP downside fading Strategists… Read more: Euro gains against British Pound as Burnham’s fiscal stance weighs - GBP/USD Price Forecast: Tests nine-day EMA support near 1.3400
GBP/USD remains weaker for the fourth consecutive day, trading around 1.3430 during the European hours on Tuesday. The technical analysis of the daily chart indicates a prevailing bullish bias as the pair remains within the ascending channel. The GBP/USD pair is holding a constructive bullish bias as spot remains above both the nine-day and 50-day… Read more: GBP/USD Price Forecast: Tests nine-day EMA support near 1.3400 - British Pound: Rally seen fading against Euro .
OCBC’s Sim Moh Siong and Christopher Wong flag renewed United Kingdom (UK) fiscal concerns under Prime Minister Andy Burnham as a headwind for the British Pound (GBP). With the Bank of England (BoE) seen less likely to tighten than European peers and EUR/GBP near one-year lows, the bank expects the recent GBP strength to fade… Read more: British Pound: Rally seen fading against Euro . - EUR/USD Price Forecast: Bearish Flag formation backs more downsideThe Euro (EUR) trades marginally lower near 1.1432 against the US Dollar (USD) during the European trading session on Monday. The major currency pair edges down as the US Dollar recovers its early losses. At press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally higher to… Read more: EUR/USD Price Forecast: Bearish Flag formation backs more downside
- Gold Price Forecast: XAU/USD keeps sight on $3,950 as the Iran war escalatesGold is swinging between gains and losses at around $4,000 in Monday’s Asian trading, as the US-Iran conflict continues to flare up amid a relatively data-light US economic docket this week. Gold sees downside risks intact Gold continues to find a floor after booking the biggest weekly decline in six weeks last week. However, sellers… Read more: Gold Price Forecast: XAU/USD keeps sight on $3,950 as the Iran war escalates
- Gold Weekly Forecast: Bearish pressure builds up as Middle East tensions offset USD weaknessGold (XAU/USD) struggled to benefit from the broad-based selling pressure surrounding the US Dollar (USD) as tensions in the Middle East escalated further. The preliminary July Purchasing Managers’ Index (PMI) from the United States (US) will be the only data release that has the potential to trigger a market reaction next week. Easing Fed rate… Read more: Gold Weekly Forecast: Bearish pressure builds up as Middle East tensions offset USD weakness
- Gold Price Forecast: XAU/USD pulls back before the next leg downGold is licking its wounds in Friday’s Asian trades, languishing close to two-week lows, as sellers stay hopeful of clinching the biggest weekly loss in six weeks. Gold: Downside risks intact as Mideast woes intensify Gold is trying hard to find a floor, but in vain, as sellers appear relentless, as the United States (US)… Read more: Gold Price Forecast: XAU/USD pulls back before the next leg down
- GBP/USD Price Forecast: Dip-buying favored on pullbacks below 1.3500The GBP/USD pair attracts some sellers on Thursday and erodes a part of the previous day’s strong gains to an over two-month high, around the 1.3555-1.3560 region. Spot prices stick to modest intraday losses around the 1.3525 zone through the first half of the European session, though the broader setup favors bullish traders and warrants… Read more: GBP/USD Price Forecast: Dip-buying favored on pullbacks below 1.3500
- Euro remains firm against British Pound after UK growth dataThe EUR/GBP cross holds positive ground near 0.8475 during the early European trading hours on Thursday. The British Pound (GBP) weakens against the Euro (EUR) following the UK economic data. Data released by the Office for National Statistics (ONS) showed on Thursday that the UK economy expanded by 0.1% MoM in May, following a 0.1%… Read more: Euro remains firm against British Pound after UK growth data
- British Pound: Modest UK growth and Bailey’s cautious stance – TD Securities.TD Securities projects UK GDP to grow 0.1% month-on-month in May, led by services and strong retail sales, while manufacturing and industrial output remain under pressure from Middle East-related headwinds and higher input costs. Governor Bailey’s Mansion House speech emphasized inflation returning to target more slowly, weak productivity, and a focus on stability, with little… Read more: British Pound: Modest UK growth and Bailey’s cautious stance – TD Securities.
- Gold Price Forecast: XAU/USD remains a ‘sell-on-rise’ trade amid US-Iran hostilitiesGold is resuming its downtrend toward two-week lows near $3,985 early Wednesday, following a temporary pullback seen on Tuesday, as there seems to be no end to the renewed hostilities between the United States (US) and Iran concerning the Strait of Hormuz. Gold: Sellers are back in control In the latest US escalation of the… Read more: Gold Price Forecast: XAU/USD remains a ‘sell-on-rise’ trade amid US-Iran hostilities
- British Pound strengthens after US CPI surprises to the downside
The British Pound (GBP) strengthens against the US Dollar (USD) on Tuesday after US inflation data surprised to the downside, reducing expectations of a near-term Federal Reserve (Fed) interest rate hike. At the time of writing, GBP/USD trades around 1.3415, up nearly 0.50% on the day and hovering near a one-month high. The US Consumer… Read more: British Pound strengthens after US CPI surprises to the downside - Gold Price Forecast: XAU/USD looks to US CPI and Warsh’s testimony for the next big moveGold is recovering a part of the previous 3% slide to two-week lows near $3,985, back above the $4,000 level in Asia on Tuesday. Gold traders brace for intense volatility on the US Consumer Price Index (CPI) data release, followed by Federal Reserve (Fed) Chair Kevin Warsh’s testimony. Gold is primed for two-way risks Following… Read more: Gold Price Forecast: XAU/USD looks to US CPI and Warsh’s testimony for the next big move
- Gold outlook: Key $4K support zone at risk again on worsening geopolitical situationXAU/USD Gold edged lower after opening with $20 gap lower on Monday, following the latest escalation in the Middle East that fueled inflationary risk and added to expectations that the Fed will keep higher interest rates or possibly opt for rate hikes, providing support to US dollar. Markets also focus on this week’s key economic… Read more: Gold outlook: Key $4K support zone at risk again on worsening geopolitical situation
- British Pound: Rally fades into range trade against US Dollar – UOB
UOB’s Quek Ser Leang and Lee Sue Ann note that GBP/USD gapped lower after briefly breaking above 1.3445, with momentum turning down and risks of a test below 1.3360, though 1.3320 is seen as distant for now. They judge that the advance from late last month has ended and expects a 1.3320–1.3445 range in coming… Read more: British Pound: Rally fades into range trade against US Dollar – UOB
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