Gold price analysis January 3
⭐️Fundamental Analysis
Gold prices rose on the first trading day of the year as investors sought safe havens amid escalating geopolitical tensions and concerns over the policies of President-elect Donald Trump and the US Federal Reserve (Fed).
Trump's protectionist policies could fuel US-China trade tensions and boost safe-haven demand for gold. However, these policies are seen as inflationary, which could prompt the Fed to maintain a cautious stance on interest rate cuts, limiting gold's upside.
The focus is now on ISM manufacturing PMI data and a speech by Richmond Fed President Tom Barkin later in the week. In addition, tensions in the Middle East and concerns over China's economy will continue to have a major impact on gold prices.
⭐️Technical Analysis
Gold has risen for two consecutive days with no clear correction in sight. Gold is reacting around the resistance zone of 2663-2665. In the European session, Gold did not break this zone, there is a possibility of a strong correction to 2640 to continue its sustainable uptrend. When gold increases continuously, it creates a relatively steep uptrend channel. After retesting the target of 2681-2683, which investors are expecting today, the price breaks 2640 and must wait for the price zone of 2620 to be able to BUY again. The hope of a price increase becomes less feasible when gold returns to the low range.
source
https://www.tradingview.com/chart/XAUUSD/JB53rTpl-Gold-price-analysis-January-3/
LTCUSD is set for an upward rally if it breaks above and holds comfortably above the 1M PP, signaling a strong bullish trend. However, if the 1M PP acts as resistance, we may see a decline to test the 1Y PP.
