You may want to know what has contributed to Gold regaining traction after yesterday’s pullback from 1-1/2 year tops. Dig into the latest 26 January Gold Price Technical Analysis to find out.
26 January, GKFX – Gold regained some positive traction on Friday and managed to recover part of previous session’s sharp corrective slide from 1-1/2 year tops.
A smart US Dollar recovery move, after the US President Donald Trump backed a stronger greenback, prompted some aggressive selling around the dollar-denominated commodity on Thursday. Spot prices retreated around 1.75% from an intraday high level of $1366 to finally end its four consecutive days of winning streak.
A fresh wave of greenback selling emerged during the Asian session on Friday and eventually helped the precious metal to edge higher. Adding to this, a weaker tone around Asian equity market was also seen underpinning demand for traditional safe-haven assets and further collaborated to the commodity’s move back above $1350 level.
It, however, remains to be seen if bulls are able to retain their dominant position or the current pull-back is sold into amid a mildly positive tone surrounding the US Treasury bond yields, which tends to drive flows away from the non-yielding yellow metal.
Moving ahead, investors’ focus would remain glued to the key US macro releases – advance GDP growth figures and durable goods orders, which if betters expectations could prompt some additional profit-taking slide on the last trading day of the week.
26 January Gold Price Technical Analysis
Immediate resistance is now pegged near $1358 level, above which the commodity is likely to head back towards $1366 level before darting towards 2016 highs resistance near the $1375 region.
On the flip side, $1348-47 area now seems to protect the immediate downside, which if broken could accelerate the fall towards $1340 horizontal support en-route $1335 level.
This article 26 January Gold Price Technical Analysis 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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