XAU/USD Technical Outlook – 3, Jan

From a short-term technical perspective, Gold price is once again testing bearish commitments above the critical horizontal trendline (triangle) resistance at $1,825 this Tuesday.

Gold bulls need a daily closing above the horizontal trendline (triangle) resistance to confirm the ascending triangle breakout. Buyers will then aim for a fresh upswing toward the psychological $1,850 level. Ahead of that the $1,840 round figure could come into play.  

The 14-day Relative Strength Index (RSI) is inching higher above the midline, backing the ongoing uptrend while the bullish crossovers continue to lend support to Gold bulls.

Alternatively, immediate support is seen at Friday’s low of $1,814. The next critical support awaits at the rising trendline (triangle support line) of $1,808. A breach of the latter could put the $1,800 threshold at risk, where the bullish 21-Daily Moving Average (DMA) hangs around.

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