- The bias is bullish as long as it stays above the upper median line.
- The US economic data should bring high volatility today.
- Taking out the static resistance activates further growth.
Gold price increased in the recent trading session, hitting a new high of $1,971. It did dip a bit in the short term but quickly went back up to $1,971. This happened because of the recent U.S. inflation data, where the Consumer Price Index (CPI) showed lower inflation than expected.
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This made the Federal Reserve (FED) decide to keep the monetary policy unchanged in the upcoming meetings. As a result, the U.S. dollar weakened against other currencies, leading to the rise in gold prices.
Today, good news came in from China – the Industrial Production and Retail Sales were better than expected. In Australia, the Wage Price Index matched what was predicted. In the United Kingdom, the Consumer Price Index reported a 4.6% growth instead of the estimated 4.7%, and Core CPI rose by 5.7%, slightly less than the expected 5.8% growth.
Looking ahead, the U.S. is going to release some important data. Retail Sales may show a 0.3% drop, Core Retail Sales might announce a 0.1% drop, PPI is expected to register a 0.1% growth, and the Core PPI could report a 0.3% growth again. Keep an eye out for these numbers as they can have an impact on the market.
Gold price technical analysis: Testing resistance at $1,971
Technically, the XAU/USD is going up again after testing certain levels. It went above the 150% Fibonacci line and is now trying to break the 1,971 level, which is like a barrier. If it manages to go higher than this, it could keep growing, reaching at least the R1 level (1,976). The current trend looks positive, as long as it stays above a certain line.
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- Source: https://www.forexcrunch.com/gold-price-preserving-gains-after-downbeat-us-cpi-figures/
