Key Highlights
- Gold prices are struggling to recover above the $2,040 resistance.
- A key bearish trend line is forming with resistance near $2,040 on the 4-hour chart.
- Bitcoin price declined heavily and traded below $40,000.
- The US Manufacturing PMI could remain at 47.9 in Jan 2023 (Preliminary).
Gold Price Technical Analysis
Gold found support near the $2,000 zone against the US Dollar. It started a recovery wave above the $2,020 zone but now faces a lot of hurdles.
The 4-hour chart of XAU/USD indicates that the price climbed above the 50% Fib retracement level of the downward move from the $2,062 swing high to the $2,001 low. However, the bears are still active near the $2,040 zone.
Gold is trading below the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours). There is also a key bearish trend line forming with resistance near $2,040 on the same chart.
The trend line is near the 61.8% Fib retracement level of the downward move from the $2,062 swing high to the $2,001 low. An upside break above the $2,040 level could send the price soaring toward the $2,060 resistance. The next major resistance is near the $2,080 level, above which Gold could test $2,100.
Initial support is near the $2,015 level. The first major support sits at $2,000. Any more losses might call for a move toward the $1,975 level in the coming days.
Looking at Bitcoin, there was strong selling pressure and the bears managed to push the price below the $40,000 level.
Economic Releases to Watch Today
- Germany’s Manufacturing PMI for Jan 2023 (Preliminary) – Forecast 43.7, versus 43.3 previous.
- Germany’s Services PMI for Jan 2023 (Preliminary) – Forecast 49.5, versus 49.3 previous.
- Euro Zone Manufacturing PMI for Jan 2023 (Preliminary) – Forecast 44.8, versus 44.4 previous.
- Euro Zone Services PMI for Jan 2023 (Preliminary) – Forecast 49.0, versus 48.8 previous.
- UK Manufacturing PMI for Jan 2023 (Preliminary) – Forecast 46.7, versus 46.2 previous.
- UK Services PMI for Jan 2023 (Preliminary) – Forecast 53.2, versus 53.4 previous.
- US Manufacturing PMI for Jan 2023 (Preliminary) – Forecast 47.9, versus 47.9 previous.
- US Services PMI for Jan 2023 (Preliminary) – Forecast 51.0, versus 51.4 previous.
