COMEX_DL:GC1!   Gold Futures
Gold had an impressive year in 2023, posting gains of 12.75%. However, the precious metal has failed to break and close above the psychologically significant 2100 handle and continues to face major overhead resistance. Will 2024 be a bullish cycle for Gold, or is this the top yet again?

Economic Weakness Priced In?

Gold, like many risk assets, remains influenced by macroeconomic trends and monetary policy. While the prospect of interest rate cuts in 2024 is part of the reason the metal had a stellar 2023, a flight to safety trade may be priced in, given the expectation of further economic growth slowdown in 2024. The precious metal will continue to be influenced by changes in interest rate expectations and emerging economic trends.

Technicals:

Gold has recently begun trading within a parallel channel. This range will play a pivotal role in the price action in the near term. If we see a break and close below the bottom end of the parallel channel, as well as the 50-day EMA, more weakness could follow. Conversely, to see further upside, Gold will need to retest the 2078 level, and a break and close above this level are likely to lead to a test of 2100.

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