In the upcoming trading week of January 22–26, 2024, an additional signal supporting a potential increase in gold prices emerges. This signal stems from a bounce off the support line on the Relative Strength Indicator (RSI). Another indicator is a rebound from the upper boundary of the descending channel. The growth scenario for XAU/USD quotes is nullified if prices fall and break below the 1915 area, indicating a breakdown of the support level and a sustained decline in gold prices with a target below the 1855 level. Confirmation of an asset value increase comes with a breakout of the resistance area and quotes closing above the 2125 level.
The analysis assumes an attempt to initiate a decline and test the support level near the 1965 area, followed by a continuous rise in gold prices with a target above the 2205 level. Testing the trend line on the Relative Strength Index (RSI) favors an increase in quotes. The growth option for gold is canceled if there is a fall and a breakdown of the 1915 level, indicating a continued decline in quotes below the 1855 level.