THE PRICE OF GOLD CONTINUES ITS CONSOLIDATIVE UPWARD RISE.

• On Monday, there was a minor fall purchasing in the price of gold due to a slight decline in the US dollar.

• Geopolitical tensions and concerns about approaching the safe-haven asset of gold.

· The current risk-on environment is thought to restrict profitability and act as a barrier to growth.

The gold price (XAU/USD) attracts some dip buyers on the first day, of a new week, the fall from Friday's close to $2,050. Even though traders are now keeping an eye on the core PCE Price Index, a US inflation, for cues on the timing of policy easing by the Federal Reserve (Fed), the upswing lacks optimistic confidence. This in turn will help determine the next leg of a guided move for the non-yielding yellow metal. Meanwhile, the Federal Reserve (Fed) predicted of 75 by 2024 would conclude its cycle which it unveiled last week. The price of gold and prevents the US Dollar (USD) from rising over its four-month low, which was reached on Friday. Furthermore, geopolitical risks in China and the Eurozone—benefit the safe-haven metal.

However, two Federal Reserve (Fed) officials made an effort on Friday to refute market expectations of an early. As a result, traders are unable to place fresh bets that are bullish and position themselves for future increases in the price of gold. The XAU/USD pair has an upward path of least correction loss could still be purchase.

Daily Digest Market Movers: Before making new wagers, gold price bulls wait for a significant US inflation figure.

• New York Federal Reserve President John Williams said that we aren't really talking this time and that it is too soon about them in a Friday interview with CNBC.

• William went on to warn that economic suddenly and that the central bank would have to be ready to tighten policy even further if the inflation were to halt or reverse.

• Separately, Atlanta Fed President Raphael Bostic agreed, saying are unlikely to happen anytime soon and that the first one may happen in the third quarter of 2024.

• The markets' belief that the Fed will loosen policy by the first half of 2024 is holding back the US dollar's recovery from more than a four-month low, which is supportive of the gold price.

• The flash PMI prints, which were released to the public on Friday, showed that Germany fell in December, indicating a recession in the largest economy in the Eurozone.

• North Korea launched at least one type of ballistic missile on Monday; the type was unknown, just a few hours after the country launched an independent short-range missile late on Sunday night.

• According to a government readout cited by Xinhua, the economy is predicted and chances than problems in 2024.

• “China's prices are low, central government debt levels are not high, and conditions are in place to strengthen implementation fiscal policies,” according to Xinhua.

• This halts further rises in the safe-haven precious metal and upholds the Fed's dovish stance and the underlying optimism.

Technical Analysis: Despite a slight intraday gain, the gold price fails.

From a technical perspective, any more rise over the $2,040 supply zone is likely to encounter fierce opposition. The gold to retest the swing high from last week, which is situated in the $2,049–$2,050 zone, if this is overcome. Bullish traders will welcome a tiny amount of follow-through a way to the next major barrier, which is situated in the $2,072-2,073 zone. The XAU/USD pair might be able to regain the $2,100 round-figure mark if the trend holds.

In contrast, more losses may be restrained before the psychological $2,000 barrier by the horizontal resistance breakpoint between $2,01 and $2,010. If there is a significant break below the 50-day SMA support, which is currently in the $1,982-1,981 zone, the price of gold will be vulnerable to challenges. The next areas of interest are the 200-day SMA, which is at the $1,956–1,955 region, and the swing low from last week, which was approximately $1,973. The near-term bias will shift in favor of bearish traders if both are decisively breached.

The current US dollar price

The US dollar's (USD) percentage change compared to a list of major currencies is displayed in the table below. In relation to the New Zealand Dollar, the US dollar was the weakest.

The major currencies' percentage movements relative to one another are displayed on the heat map. The quotation currency is selected from the top row, and the base currency is selected from the left column. For example, the percentage change shown in the box will indicate EUR (base)/JPY (quote) if you select the Euro from the left column and proceed along the horizontal line to the Japanese Yen.