Post by: PocketOption on Jul 14, 2023, 03:59 am
- Traders appear bullish ahead of CPI release
- A number of resistance levels above
- Could a stronger inflation report push gold below $1,900?
Gold is edging higher again today but there is clearly an element of caution in the move.
Perhaps traders are hopeful of a favorable CPI figure from the US but they’re clearly not that confident with the price remaining below $1,940 where it has repeatedly run into resistance.
Gold Daily
Source – OANDA on Trading View
A break above here today could be a bullish signal, although there remain many more obstacles ahead including $1,960, $1,980 and $2,000 before traders will feel confident that the yellow metal is back.
A stronger inflation report could push it back towards $1,900 which has held as support until now, mostly. A break of this could be a very bearish development.
The key levels below may be seen around $1,850-$1,870 around the 200/233-day simple moving average ban which also coincides with prior support and resistance around $1,860. That said, it is worth noting that it hasn’t been particularly responsive to this moving average band in the recent past.
Source: XAU/USD - Could US CPI data trigger a major breakout in gold? (https://www.marketpulse.com/gold/xau-usd-could-us-cpi-data-trigger-a-major-breakout-in-gold/cerlam)