XAUUSD is directed towards 2060 while the Recession is coming!

The price of gold has reached almost $2,030, benefiting from the stabilization of the US dollar. However, a downward correction is not entirely convincing as traders reduce bets on a Fed rate cut in March. The precious metal has experienced a strong recovery after finding support near $2,000, backed by the 50-day Exponential Moving Average (EMA). Nevertheless, the resistance of the 20-day EMA at $2,035 hinders the gold bulls. The 14-period Relative Strength Index (RSI) has bounced back, but the future remains uncertain. Geopolitical tensions in the Middle East, including conflicts in Gaza and tensions between Houthi rebels and the United States, have driven gold higher. However, short-term prospects are not entirely bullish as bets for a Fed rate cut decline. Uncertainty about inflation in the United States persists, with conflicting data on price growth and a strong economy due to household spending. The Fed is expected to keep rates between 5.25% and 5.50% at the January 31 meeting, but traders will be attentive to any comments on managing expected rate cuts in 2024. Let's prepare for future gold rallies in anticipation of the turbulent storm that awaits the markets in the next 6 months. The market may not believe it yet, but the words of central bank speakers have been clear: no rate cut in the first quarter. Greetings and have a great weekend to everyone from Nicola.