1 February the gold market recently faced a downturn, and this happened right after it hit a strong resistance zone. This resistance zone proved too tough for the price of gold, also known as XAUUSD, and it stopped the price from climbing any higher after it had initially gone up. I am thinking that the price will likely have a minor increase at first. This increase is a pullback, a small rise before a potential drop. However, after this slight rise, I believe the price will start a downward trend. It seems probable that the price will keep going down until it meets the recently established support levels. It’s also likely that the price will reach the boundary of the trading channel that we are currently tracking.
XAUUSD Context
Upon examining the daily charts closely, we see two particular bars with noticeably long tails. This detail is significant because it signals that the buyers, also known as the bulls, lack the necessary strength to push the price up to new highs. Observing this, I predict that the price is more likely to move downwards. It might even go down to the level of the lowest price that was recorded on the previous day, or possibly even lower.
XAUUSD Trading Idea for 1 February 2024
Taking all this into consideration, I have decided on a specific target for myself. I am watching the support level closely, especially around the 2031 mark. This level is where I plan to focus my actions and decisions in the gold market.