XAU/USD Technical Outlook – 24, Jan

The daily chart for the XAU/USD pair favors a bullish continuation, but the price is currently facing resistance around the $1,935 zone. The pair topped last week at $1,937.47. The metal needs to consolidate above $1,935.00 to open the door to an upward extension. Technical indicators in the mentioned time frame remain within overbought readings. The RSI is moving south, about to slide below 70. The 20-day Simple Moving Average (SMA) heads firmly north, far below the current level but above the longer ones at around $1,869.40.

For the near term, and according to the 4-hour chart, XAU/USD is slightly biased to the downside. The rebound from $1,910 took Gold back above the 20-SMA in the mentioned chart ($1,920) avoiding a deterioration in the technical outlook. If it drops back below it, attention would turn to $1,912, the last strong defence before the critical $1,900.

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