XAUUSD Weekly Analysis 20/1/2025

Gold remains bullish, but we're approaching a significant resistance level at 2748. On the 4-hour chart, this level has already formed a triple top: November 25th, December 24th, and January 16th. These repeated rejections highlight the importance of this area as a decision point for price action.

For a continuation of the bullish trend, we need to see a strong 4-hour close above 2748. Why 4-hour? Because we've seen 30-minute closes above this level in the past, but the lack of follow-through led to bearish reversals. A confirmed 4-hour breakout would suggest the bulls are ready to push higher, targeting the next major level around 2787.55, offering approximately 200 pips of potential upside before re-evaluating the trade.

On the flip side, a rejection at this level could lead to a significant move lower, similar to what we saw in December. The first target in this scenario is around 2640 (a potential 750-pip drop). If selling pressure intensifies, we could see an extended move down to 2581, which would represent a 1,300-pip decline.

At those lower levels, we would look for buying opportunities, as they could provide a favourable setup for continuing the long-term bullish trend.

For now, all eyes are on 2748—watch closely for how price reacts here, as it will set the tone for the next big move!