Gold prices are experiencing increased demand and attempting to reach the important $1,850 level, due to a shift in the market’s perception of risk. Investors are ignoring the negative performance of Wall Street and are waiting for the US ISM Manufacturing PMI and US Federal Reserve’s December meeting minutes for new trading opportunities. The recent rise in gold prices may be due to a decrease in the value of the US dollar and concerns about a potential global economic recession this year, which is supporting the ongoing upward trend in the metal. In the future, economic data and other fundamental factors are likely to influence market reactions and impact gold trades and risk sentiment.
Price is currently eyeing a break of $1,850 with next resistance at $1,855 to $1,860 while immediate support is at $1,834 a break below would expose the yellow metal to $1,822.