The current price of XAU/USD is at 2,051.10, with the market maintaining a ranging pattern due to the US holiday. However, sentiment remains sour as investors keep an eye on inflation and the World Economic Forum in Davos. Despite this, XAU/USD is showing a marginally bullish near-term outlook, with the need to clear the $2,062.35 resistance area to confirm further gains.
Gold prices are holding onto gains, trading near an intraday high of $2,058.55. The quiet American afternoon, due to the Martin Luther Day holiday, has contributed to the market’s lack of significant movement. The week began with optimism in Asian shares but the positive sentiment faded during European trading hours.
Looking ahead, the US macroeconomic calendar has little to offer this week. The focus will remain on inflation, with updates expected from Canada, the United Kingdom, Germany, and the Eurozone. Additionally, investors will keep an eye on the World Economic Forum in Davos, where major central bankers and authorities will be giving speeches.
Technically, XAU/USD seems poised to extend its recovery, with the pair holding above a mildly bullish 20 Simple Moving Average in the daily chart. However, additional confirmation is required for the short-term outlook. The 4-hour chart suggests a skew to the upside, but confirmation is also needed. The resistance levels to watch are at 2,062.35, 2,074.40, and 2,087.00, while support levels are at 2,049.15, 2,037.90, and 2,024.50.
The additional insight into this article could include a discussion of the impact of inflation on gold prices and the potential effects of speeches from major central bankers and authorities at the World Economic Forum in Davos. Furthermore, it would be beneficial to mention any geopolitical or economic events that could influence the sentiment surrounding XAU/USD in the near term.
