Gold Technical Analysis: Bulls’ Eyes Are Turning Towards The 2000$ Peak Again

Buy gold above the psychological resistance of 2000 dollars per ounce with caution and without risk for near-term goals. 

 Markets Are MixedOn another side, Stock market indices around the world were mixed yesterday after China pledged more spending to boost its economy. According to trading, indices in Paris, Frankfurt, Sydney, and Seoul fell, but indices in London, Tokyo, and Hong Kong rose. On the other side, US futures were mixed, and oil prices rebounded. Also, China plans to issue 1 trillion yuan (US$139 billion) in government bonds to finance new construction projects and other initiatives as part of efforts to boost faster economic growth. Therefore, The Xinhua news agency quoted Deputy Finance Minister Zhou Zhongming as saying that the goal is to stimulate more domestic spending and “continue to boost the momentum of China’s economic recovery.”However, officials said the money would not be directed to China’s troubled property sector, which has had a significant impact on growth as developers struggle to meet their huge debt repayment obligations while demand weakens.According to market performance, Chinese stocks posted modest gains on Wednesday, with the Hang Seng index in Hong Kong rising 0.6% to 17,085.33 points. The Shanghai Composite Index rose 0.4% to 2,974.11 points. In early European trading, Germany’s DAX index fell 0.4% to 14,825.07 and France’s CAC 40 index fell 0.5% to 6,864.02. In London, the FTSE 100 index rose 0.1% to 7,384.58 points.Contrarily, The S&P 500 futures fell 0.4%, while the Dow Jones Industrial Average rose 0.1%. In Tuesday’s session, the S&P 500 rose 0.7%, the Dow Jones rose 0.6%, and the Nasdaq Composite rose 0.9%.In Asian trading on Wednesday, Japan’s Nikkei 225 index rose 0.7% to 31,269.92. South Korea’s Kospi index fell 0.9% to 2,363.17, while Australia’s S&P/ASX 200 index in Sydney lost 2.6 points to 6,834.39. India’s Sensex index fell 0.8%, and Thailand’s SET index rose 0.8%. Stock markets had fallen under the weight of rising Treasury yields, although they had a brief respite this week as the 10-year Treasury yield fell after rising to 5.02% earlier this week. As of early Wednesday, the 10-year bond yield was 4.87%.As is well known, high yields affect stock prices, cryptocurrencies, and other investments. They also lead to a clear slowdown in the economy and put pressure on the entire financial system. So far, the overall economy has remained remarkably resilient in the face of much higher interest rates. A strong labor market and household spending have helped to keep the economy moving forward.Moreover, some investors are concerned that even if interest rates and yields do not rise any further, they are still high enough to eventually drag the US economy into a recession if the Federal Reserve continues its current policy. Gold price forecast for XAU/USD todayAccording to the performance on the daily chart below, the overall trend of the price of gold XAU/USD is still up and breaking the psychological resistance of 2000 dollars per ounce is possible with strength. With it, all technical indicators will move towards strong buying saturation levels, and therefore buying will be above that resistance with caution and without risk for near-term goals. Therefore, the most important resistance levels for gold are currently 2000, 2020, and 2042 dollars, respectively. On the same period, a change in trend will not occur without breaking the support levels of 1948 and 1930 dollars, respectively.Finally, the price of gold will be affected today by developments on the ground in the Middle East, as well as the dollar’s reaction to the results of important economic data, such as GDP growth, the number of unemployed claims, and US durable goods orders. More By This Author:Forex Today: Bank Of Canada Expected To Leave Rates Unchanged EUR/USD Technical Analysis: Anticipation Of The Purchasing Managers’ Index ReadingsGBP/USD Technical Analysis: Bear Control Continues