XAU/USD Runs its Second Profitable Week, Firm Direction Still Elusive



Gold is off to a good monthly start, after January's decline, running its second straight week of gains. It still lacks firm direction though, since it trades around the EMA200 (black line) during this year. Its movement so far seems to be mostly a reaction to the US Dollar's activity, while it has shown inability to take advantage of geopolitical tensions, mostly stemming from Ukraine.

Today it has entered its fourth straight constructive day, trading above the EMA200, which gives it the ability to push towards January's peak and the descending trend-line form the 2021 high (1,854-5). However, we are cautious at this stage for larger rise that would take 1,877 out.

The Relative Strength Index (RSI) approaches an overbought area that could limit the upside and cause pressure back below the EMA200 (at around 1,812), although fresh 2022 lows (1,780) are likely going to need fresh impetus.

Overall, the chart paints an inconclusive picture and XAU/USD will need a catalyst to break this year's range (1,854-1,780). The economic calendar has not provided such an opportunity yet, with the first major release coming on Thursday in the form of US CPI Inflation (13:30 GMT).

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Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.


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