Gold price falls briefly and is expected to rise by more than $20 (with trading strategy)
Gold prices fell on Friday as U.S. bond yields rose slightly. However, the weakening of the US dollar and the market expectation that the United States will introduce more stimulus measures, the weekly price of gold is expected to record the largest increase in five weeks.

Gold prices fell on Friday as U.S. bond yields rose slightly. However, the weakening of the US dollar and the market expectation that the United States will introduce more stimulus measures, the weekly price of gold is expected to record the largest increase in five weeks.
Spot gold fell 0.1% to US$1,867.34 per ounce. It hit US$1,874.86 on Thursday, the highest since January 8. US gold futures edged up 0.1% to US$1,867.80.
The price of gold futures for February delivery fell 60 cents or less than 0.1% to close at $1865.90 per ounce. March silver futures prices rose 9 cents, or 0.3%, and eventually closed at $25.854 an ounce.
Investors took profits after rising in the previous trading day, which made gold prices fall from a two-week high on Thursday. However, expectations of further stimulus measures and a weaker U.S. dollar limited the decline in gold prices.
Spot gold closed at US$1,69.87 per ounce on Thursday, down US$1.88 or 0.1%. The price of gold continued to try to break through $1871.55 per ounce on Thursday, but the price of gold faced solid resistance at this level.
The depreciation of the U.S. dollar and the expectation that the Biden administration will support government spending to revitalize the economy have provided near-term support for gold prices, but Naeem Aslam, chief market analyst at AvaTrade, believes that with the recent price increase, he said: “It’s time for gold to pull back. When the US economic data was better than expected, this also affected the price of gold.”
The US government announced on Thursday that in the seven days ending on January 16, the number of initial claims for unemployment benefits fell by 26,000 to 900,000 after a seasonal adjustment. At the same time, the new housing start season in December saw a monthly increase of 5.8% to an annual rate of 1.67 million. The Philadelphia Fed Business Condition Index jumped from 9.1 in December to 26.5 in January.
However, some analysts say that as long as the price of gold remains above $1,850.80 per ounce, the bullish point will still be valid. It is expected that US$1855.00/ounce and US$1890.00/ounce will constitute short-term support and resistance to gold prices respectively.
Trading strategy (Source: Trading Central)
Pivot: 1878.00
Our preference: short positions below 1878.00 with targets at 1857.00 & 1851.00 in extension.
Alternative scenario: above 1878.00 look for further upside with 1885.00 & 1893.00 as targets.
Comment: the RSI advocates for further downside.
Supports and resistances:
1893.00
1885.00
1878.00
1868.50 Last
1857.00
1851.00
1843.50
Guideline for Trading Central strategy
Trend chart reading guideline
1. First look at the time period in the upper left corner of the chart:
・30MIN and 1H chart shows the trading suggestions for intraday
・Daily chart shows the market trend analysis in next 2-3 days
2. The blue horizontal line on the chart marks the pivot: pivot indicates the reversal of the market. When the price is above the pivot, it indicates an upward trend, when the price is below the pivot , it indicates a downward trend. When the price breaks through the pivot, the trend is reversed.
3. The red and blue thin curves in the Candlestick chart chart are technical indicators: Red line is MA20+Bollinger bands, Blue line is MA50. under the Candlestick chart chart are also the technical indicators: Blue line is RSI, Red line is 9MA;
4. The green horizontal line is the resistance level for a price increase, and is also the profit target for long orders; the red horizontal line is the support level for a price decrease, and is also the profit target for short orders.
How to use TC strategy?
1.[Pivot] is the reversal line of the market trend. When the price up the pivot line which means in Bullish, you can open a long position or Buy. on the contrary, when the price under pivot line which means in bearish. You ‘d better make short positions or Sell.
2. [our preference] is the main trading suggestion for your reference. You can exit your trading refer to this target or close positions before it.
3. [Alternative scenario] is the plan B for your reference.
4. [Comment] is the technical analysis of market trends and technical support for trading strategies.
5. [Supports and resistance] Supports are levels where the price tend to find support as it falls.
Resistances are levels where the price tend to find resistance as it rises. So, exit before the trend reverse.
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