Gold price was pushed to a one-month-high by better-than-expected PPI and core CPI US economic figures last week. However, it was rejected by 2720 and the price has begun to consolidate before the market close on Friday. Israel and Palestine started to exchange hostages after reaching a ceasefire agreement, easing tensions in the Middle East, which put pressure on gold prices as markets opened on Monday. Today is a U.S. holiday, but the market will focus on the new president’s policies post-inauguration, believing that news will steer investment markets in the coming week. Whether gold prices will attempt new highs remains to be seen, with a key resistance level at 2720.

1-hr Chart(above) > The overall trend of gold prices was in line with our expectation last week, bounded by the range of 2665-2720. Despite the price being rejected by 2720(1) again, the S-T trend is still running within an upward channel(2), and remains bullish for now. Keep an eye on whether gold prices can break out from the upward channel(2) this week; once it falls below the upward channel, it would be the first sign of a possible trend reversal!

Daily Chart(above) > Gold prices tested the 2720 resistance for the third time last week, but this time, unlike the previous two attempts where prices rapidly fell within 24 hours after reaching the top, seems like, the market has already adjusted to prices above 2700. This week, the trend of gold prices will be influenced by the new U.S. President and his policies, so keep an eye out for any announcements. If gold prices can break through the 2720 resistance, it will trigger a new round of long-buying, with the next target at 2790. The support below lies at the ascending support line (4) and the 100-day moving average (5).

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