The yellow metal hits a 19-week high as USD sell-off continues. Will gold bulls push prices higher? Gain the insights of GKFX’s analysts with today’s, 15 January Gold Price Technical Forecast.
15 January, GKFX– The relentless USD selling is boding well for the safe haven yellow metal. As gold (XAU/USD) hit a 19-week high of $1344.75 today as the dollar index (DXY) fell to 90.39; the lowest level since December 2014.
- Gold hit the 19-week high of $1344.75.
- Dollar index drops to 3-year low.
- Momentum studies – MAs favor further upside in gold, RSI shows overbought conditions.
The upbeat US data, record high stock markets, and rising Treasury yields are no longer helping the US dollar. This could be because market attention has shifted to the increased odds of faster policy tightening elsewhere (ECB, BOJ, BOC).
The only risk to gold rally could stem from technical conditions – overbought daily RSI. Ahead in the day, the trading volumes could drop as US markets are closed.
15 January Gold Price Technical Forecast
A break above $1357.55 (September high) would expose $1375.14 (July 2016 high) and $1380.26 (38.2% Fib R of 2011-2015 sell-off). On the downside, breach of support at $1336.50 (session low) could yield a test of upward sloping 5-day MA and 10-day MA level of $1331.72 and $1324.65, respectively.
This article 15 January Gold Price Technical Forecast was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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