Technicals: Spot gold still targets $2,719-$2,728 range

Rush Street Interactive

23/01/2025 03:52

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       SINGAPORE, Jan 23 (Reuters) - Spot gold  XAU=  still
targets a range of $2,719 to $2,728 per ounce, as suggested by
its wave pattern and the bearish divergence on the hourly RSI.
    A wave 3 from $2,614 seems to have completed as it could be
broken down into five smaller waves. Instead of rising further,
the metal started to decline after briefly piercing above the
upper trendline of a rising wedge. 
    This cautious move represents a dissipation of the bullish
momentum, as confirmed by the divergence on RSI. The market is
more likely to fall towards the lower trendline of the wedge,
than to retest resistance at $2,765.      
    On the daily chart, the uptrend seems to have resumed within
a rising channel. It may extend above $2,793. However, the
extension may not occur until the resistance at $2,759 is
broken.
    The small white candle on Jan. 22 symbolizes a weakness of
the market. A break above $2,759 might be less likely. 
 
    
    * Wang Tao is a Reuters market analyst for commodities and
energy technicals. The views expressed are his own.
    ** No information in this analysis should be considered as
being business, financial or legal advice. Each reader should
consult their own professional or other advisers for business,
financial or legal advice regarding the products mentioned in
the analyses.

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xau    https://tmsnrt.rs/42o39QW
tech    https://tmsnrt.rs/3CtHPPp
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 (Reporting by Wang Tao; Editing by Sonia Cheema)
 ((wang.tao@tr.com; +65 6973 8364/9188 4196))