Mid-Week Technical Outlook: Gold heading back towards $2000?

<p><strong>By <a href="http://investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a> </strong></p>
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<ul>
<li>Gold boosted by fundamental forces</li>
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<li>Technical indicators signal further upside</li>
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<li>Time for bulls to step into a higher gear?</li>
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<li>All eyes on key psychological $2000 level</li>
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<h3><strong>Gold glittered on Wednesday after jumping over 1% in the previous session.</strong></h3>
<p><img fetchpriority="high" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDH1_3.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="33956b38-77d2-45f2-aa98-8d207e4cb9fd" data-src="/s3-static/users/user17/XAUUSDH1_3.png" /></p>
<p>The precious metal drew strength from a <strong>weaker dollar and falling Treasury yields</strong> following the <strong>softer-than-expected US inflation data</strong> on Tuesday.</p>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDH4_10.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="180b66b3-4767-44b5-a17a-b27cc6dc626f" data-src="/s3-static/users/user17/XAUUSDH4_10.png" /></p>
<h3><strong>This data has knocked the probability of another Fed hike to almost zero with traders pricing in a 50-basis point rate cut by July 2024, according to Fed Funds futures. </strong></h3>
<p><strong>Given gold’s zero-yielding nature</strong>, further gains could be on the cards as expectations rise over the <strong>Fed cutting interest rates in 2024. </strong>It will be wise to keep a close eye on the<strong> incoming US retail sales data </strong>among other key reports<strong> and speeches by Federal Reserve officials this week</strong> which could influence expectations around what the <strong>Fed does beyond 2023</strong> – ultimately impacting gold prices.</p>
<p>Focusing on the technical picture, gold could push higher if a <strong>daily close above $1968 is achieved.</strong></p>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDDaily_48.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="3cb35070-8c66-4cc4-8b43-936e1fa7308b" data-src="/s3-static/users/user17/XAUUSDDaily_48.png" /></p>
<h3><strong>After rebounding from the 200-day SMA earlier this week, bulls have been armed with the technical and fundamental ammunition to attack the psychological $2000 level once again. </strong></h3>
<p>In addition, the <strong>Relative Strength Index (RSI) </strong>has yet to hit overbought conditions – signaling room for further upside.</p>
<p><img loading="lazy" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDDaily2_3.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="8898b371-2619-4f34-bb2d-8c0351be547c" data-src="/s3-static/users/user17/XAUUSDDaily2_3.png" /></p>
<p>On the weekly charts, the trend flipped back in favor of bulls in October after prices breached the <strong>bearish channel. </strong>However, a solid close above the $2000 resistance is needed for bulls to step into a higher gear.</p>
<p><img loading="lazy" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDWeekly_15.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="b427b591-2c78-453f-96d2-4899ad79f55e" data-src="/s3-static/users/user17/XAUUSDWeekly_15.png" /></p>
<p>Taking a brief look at the monthly timeframe, prices remain in a very wide range with key resistance at $2000 and support at $1800. It is worth noting that <strong>gold has never secured a monthly close above the psychological $2000 level.</strong> Given the solid monthly candle in October and strong fundamental drivers supporting bulls, a significant move could be on the horizon.</p>
<p><img loading="lazy" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDMonthly_5.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="ec2f9e7e-e9e3-422e-a94b-978efe1d8b88" data-src="/s3-static/users/user17/XAUUSDMonthly_5.png" /></p>
<p>Redirecting our attention back to the daily timeframe, bulls look to be in a position of power with all eyes on $2000.</p>
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<h3>A strong daily close above $1968 may open the doors back towards $2000, $2010, and $2018, respectively.</h3>
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<h3>Should prices remain capped below $1968, this could trigger a decline back towards $1945 and $1934 – where the 200-day SMA resides.</h3>
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<p><img loading="lazy" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDDaily3_1.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="4f7a3983-a4b3-449d-af03-27d788a7baec" data-src="/s3-static/users/user17/XAUUSDDaily3_1.png" /></p>
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<p><img loading="lazy" 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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