XAU London Gold - Gold Maintains High Levels, Watching for Trump's Inauguration Developments

The U.S. dollar saw a rebound last Friday, but overall for the week, it continued its decline, ending a six-week streak of gains. Investors are awaiting clues about Trump's presidential inauguration and the upcoming government policy direction. Trump and Xi Jinping spoke on Friday, marking the first known call between the two leaders since Trump's election in November. They reportedly discussed trade balance, fentanyl, TikTok, and many other issues. The latest U.S. economic data further pushed down U.S. bond yields, with soft core inflation data increasing market bets on a more dovish stance from the Federal Reserve. Additionally, Federal Reserve Governor Waller indicated that if U.S. economic data softens further, there could still be three to four rate cuts this year. Other data showed that U.S. retail sales in December fell below expectations, and initial jobless claims last week were higher than expected, which also weighed on the dollar.

The market is eagerly anticipating Trump's inauguration on January 20, with his broad trade tariffs expected to further ignite inflation and trigger a trade war, potentially increasing the attractiveness of gold as a safe haven. London gold rose to a one-month high last Thursday at 2724.55, nearing the historical high of $2790.15 set in October. However, there was a pullback by Friday, pressured by the dollar's rebound, closing near the 2700 level. Based on technical charts, gold prices recently broke above a technical triangle pattern last Thursday, around the 2688 level, even breaking through the 2700 level. Short-term stability is expected for gold prices, with attention on the high of December 12 at 2725, the high of November 25 at 2721, and the recent high on Thursday at 2724. This range will serve as significant resistance, with further upward extensions targeting $2750, $2790 (October high), $2800, and $2820. Immediate support levels are at 2700 and 2685, while stronger support is expected at 2658 and the 100-day moving average at $2640.

London Gold Forecasted Range from January 20 to 24:
Resistance: 2715 - 2735 - 2749 - 2764
Support: 2696 - 2682 - 2668 - 2648

London Gold January 20
Forecast early range: 2698 - 2704
Resistance: 2711 - 2724 - 2734
Support: 2691 - 2685 - 2675

SPDR Gold Trust Gold Holdings:
January 13 - 874.53 tons
January 14 - 872.52 tons
January 15 - 872.52 tons
January 16 - 868.78 tons
January 17 - 879.12 tons

17/1 AM London Gold Fix: 2705.1
17/1 PM London Gold Fix: 2715.2

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