Gold was unable to crack the psychological level at $1,950 to bring fresh hopes of a new wave of bullish momentum and this can not be unconnected to the reassuring U.S. economy as the fear of recession recedes at least in the meantime. Data reported on Friday reveals that the PCE Index grew 5% in the year to December, versus an annual expansion of 6.8% in June further bringing a positive light to the Greenback. From a technical perspective, we have identified a potential trend continuation pattern as the $1,920 zone continues to reject selling momentum throughout last week's trading session. We still keep the option of a sell-off open considering the continued sell pressure below the $1,940 zone which might lead to an outright breakdown/retest of both the trendline (identified on the 4H timeframe) and the $1,920 zone.
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