Article by: ETO Markets

Gold (XAU/USD) continues to navigate a complex macro environment characterized by competing fundamental drivers. Recent economic data, particularly the stronger-than-expected ISM Services PMI (54.1) and JOLTS job openings (8.098M), has reinforced the Federal Reserve's cautious stance on rate cuts, as evidenced by the metal's sharp rejection from .... This fundamental shift is clearly visible in the price action, with increased selling pressure emerging above .... However, the downside remains supported by escalating geopolitical tensions, particularly concerning potential military intervention in Gaza, and uncertainty surrounding President-elect Trump's trade policies. The rejection of reports suggesting a softer stance on tariffs has maintained a floor under gold prices, with institutional buying emerging near the ... technical support, as confirmed by elevated volume profiles in this region.

From a technical perspective, the daily chart reveals a well-defined consolidation pattern, with prices respecting key technical levels. Primary support at ... is established through multiple successful tests (...-...) in late December, accompanied by strong buying volume. This level gains additional technical significance from the convergence with the 100-day EMA (...). The formation of progressively higher lows from this zone, including the recent ... level, reinforces the bullish structure emerging from this support. The immediate resistance at ... (recent high) has proven formidable, with multiple rejections occurring on declining volume. A break above this level would target the significant November-December swing high at ..., which served as a key pivot point during the recent consolidation phase.