Comprehensive XAU/USD Analysis for January 24, 2024

In this comprehensive analysis, Ultima Markets brings you an insightful breakdown of the XAU/USD for 24th January 2024. 

XAU/USD Key Takeaways 

• Expectations have faded: Interest rate cut expectations are still ongoing: Former Fed official Bullard believes that if the Fed starts cutting interest rates too slowly, it may have to cut interest rates by 50 basis points at a time at future meetings. 
• The outlook for gold prices in 2024: Benefiting from expectations of the Federal Reserve cutting interest rates in 2024 and geopolitical uncertainty, gold prices may remain high in the new year. 

XAU/USD Technical Analysis

XAU/USD Daily Chart Insights

• Stochastic Oscillator: The indicator swings disorderly below the 50 midline, implying that the current market has no trend direction and a trading strategy related to the oscillation range needs to be implemented. 
• Moving average: After crossing below the blue 17-day moving average, the red 7-day moving average maintains a parallel trend with the black 65-day moving average. It implies that the current market has entered sideways consolidation, and it is worth traders paying attention to the buy low and sell high strategy in the small cycle. 

XAU/USD 1-hour Chart Analysis

• Stochastic Oscillator: The indicator sends a bull signal below the 50 midline, and the price of gold also forms a trend upward trend, suggesting that short-term bulls have the upper hand in the current market. 
• Moving average combination: The red 7-period moving average, the blue 17-period moving average and the black 65-period moving average reopened and diverged after yesterday’s entanglement, while supporting the rise of gold prices. If the gold price continues to break through the previous day’s high of 2030.66 under the support of the moving average, you can pay attention to short-term long trading opportunities. 
• Convergence pattern: The price of gold currently forms a convergence pattern as shown in the figure. Since this pattern is a relay structure of the previous upward trend, it cannot be ruled out that the market may break through this range today. 

Trading Central Pivot Indicator

• According to the trading central in Ultima Markets APP, the central price of the day is established at 2021.00, 
• Bullish Scenario: Bullish sentiment prevails above 2021.00, first target 2035.00, second target 2039.00; 
• Bearish Outlook: In a bearish scenario below 2021.00, first target 2017.00, second target 2012.00. 

Conclusion