XAUUSD Waiting the level 2065 to go short!

Gold prices continue to rise for the third consecutive day on Monday, reaching around $2,055 per troy ounce. The upward movement is attributed to the risk aversion stemming from geopolitical tensions in the Middle East. Immediate resistance is observed at the January 5 high of $2,060, with static resistance at $2,080 to be tested if surpassed. Sustained upbeat momentum may lead to a retest of the $2,100 barrier. However, if Gold encounters sellers at higher levels, triggering a pullback, the initial contention point becomes the 21-day SMA resistance-turned-support at $2,046. A daily closing below this level is crucial to negate the renewed uptrend. Gold is capitalizing on persistent uncertainty in the market, with investors digesting recent fundamental developments at the start of the week on Monday. The US Dollar is fluctuating in a light market due to the Martin Luther King Jr. Day holiday. On Friday, the US Dollar slipped after an unexpected decrease in the Producer Price Index (PPI) in the US in December, increasing bets on a Fed rate cut in March and dragging down US Treasury bond yields. Market pricing now indicates a 78% probability that the US central bank will start cutting rates in March, up from 68% the previous week, according to the CME Group’s FedWatch tool. The main focus this week remains on Fed Governor Christopher Waller’s speech, US Retail Sales data, and Chinese quarterly GDP numbers. Best regards and happy trading to everyone from Nicola.