Gold Price Faces Resistance at $2,000 Amid Mixed Cues

Gold price

January 18, 2023

New Delhi, India

Gold Rebounds from One-Month Low, but Upside Limited

Gold price attempted to recover from a two-day losing streak on Thursday, snapping above the $2,000 psychological level. However, the precious metal faced resistance at this level and struggled to extend its gains.

Geopolitical Tensions and China’s Economy Support Safe-Haven Demand

Geopolitical tensions, including Houthi rebels’ attacks in the Red Sea and Pakistan’s military strikes in Iran, boosted safe-haven demand for gold. Concerns about China’s economic growth, despite meeting the official target, also supported the precious metal.

Weaker Dollar Provides Some Lift, but Elevated Yields Cap Gains

A modest US Dollar downtick offered some support to gold, but the upside was capped by elevated US Treasury yields and hawkish comments from Fed officials.

Also Read: Indian Rupee Strengthens as RBI Signals Economic Resilience and US Data Awaited

Technical Analysis Suggests Further Downside Risk

Technically, gold remains below its 50-day SMA, and oscillators are turning negative, suggesting further downside risk. A sustained move above $2,017-2,018 could trigger a short-covering rally towards $2,042-2,045.


Gold price faces an uphill battle to break above the $2,000 level, as elevated US Treasury yields and hawkish Fed comments weigh on the precious metal. Geopolitical tensions and China’s economic concerns provide some support, but the overall outlook for gold remains uncertain. Investors should closely monitor these factors and technical indicators to gauge the direction of gold price in the near term.

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