Gold seeks fresh momentum

<p><strong>By <a href="http://investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a> </strong></p>
<div>
<ul>
<li>Gold trading between key weekly levels</li>
</ul>
<ul>
<li>Incoming US data could move precious metal</li>
</ul>
<ul>
<li>H4 charts show possible bullish presence</li>
</ul>
<ul>
<li>Four potential targets identified</li>
</ul>
<ul>
<li>H4 bullish scenario invalidated below 2001.68</li>
</ul>
<h3><span lang="EN-US" xml:lang="EN-US">Gold struggled for direction on Wednesday as markets remained cautious ahead of key US data that may impact bets on Fed rate cuts.</span></h3>
<p><span lang="EN-US" xml:lang="EN-US">After swinging within a wide range since the start of the year, a significant move could be in the works due to fresh fundamental forces. It would be wise to keep an eye on the f<strong>inal quarter US GDP report on Thursday and PCE report on Friday </strong>which could rock the precious metal ahead of <strong>next week’s Fed meeting.</strong></span></p>
<p><em><strong><span lang="EN-US" xml:lang="EN-US">Redirecting our focus back to the technicals…</span></strong></em></p>
<p><span lang="EN-US" xml:lang="EN-US">Gold has been oscillating between a weekly support level <strong>around 2005.49 and a weekly resistance level around 2060.49</strong>. The price is approaching the middle band again and although the current market structure shows a down trend, the momentum can easily shift to the upside. If the price goes higher than the last top, this will result in an early stage of a new uptrend in process.    </span></p>
<p><img fetchpriority="high" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDDaily_24012024.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="f9429081-dd86-4606-9f88-8591c4eaf307" data-src="/s3-static/users/user17/XAUUSDDaily_24012024.png" /></p>
<p><span lang="EN-US" xml:lang="EN-US">A look at the 4-hour time frame can provide more precision.</span></p>
<p><span lang="EN-US" xml:lang="EN-US">On the 4-hour chart the price has been oscillating around the <strong>50 Linear Weighted Moving Average</strong> with the Momentum and the <strong>Moving Average Convergence Divergence (MACD) oscillators</strong> both confirming a possible build up to the demand side. </span></p>
<p><span lang="EN-US" xml:lang="EN-US">If the price reaches the <strong>2039.50 level,</strong> a long opportunity becomes feasible.</span></p>
<p><span lang="EN-US" xml:lang="EN-US">Attaching a modified Fibonacci tool to the trigger level at <strong>2039.50</strong> and dragging it to the last bottom at <strong>2001.68</strong>, four possible </span><span lang="EN-US" xml:lang="EN-US">targets can be determined:</span></p>
<ul>
<li>
<h3><span lang="EN-US" xml:lang="EN-US">The first target is possible at 2054.63 (Target 1). </span></h3>
</li>
<li>
<h3><span lang="EN-US" xml:lang="EN-US">The second price target is probable at 2062.19 (Target 2).</span></h3>
</li>
<li>
<h3><span lang="EN-US" xml:lang="EN-US">The third price target is likely at 2077.32 (Target 2).</span></h3>
</li>
<li>
<h3><span lang="EN-US" xml:lang="EN-US">The fourth and last price target is feasible at 2096.23 (Target 4).</span></h3>
</li>
</ul>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDH4_24012024.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="c6f1f88a-5c03-413c-8360-7ddda69cbee4" data-src="/s3-static/users/user17/XAUUSDH4_24012024.png" /></p>
<p><strong><span lang="EN-US" xml:lang="EN-US">If the price breaks past the 2001.68 level, this scenario is no longer applicable, and a short option becomes viable. </span></strong></p>
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<p><img decoding="async" class="size-full wp-image-54242 alignleft" src="https://www.investmacro.com/articles-analysis/wp-content/uploads/2014/07/Forex-Time-Logo.png" alt="Forex-Time-Logo" width="262" height="90" /><strong>Article by <span><a href="https://www.investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a></span></strong></p>
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