Gold Awaits Growth Momentum from US Inflation Data
Gold prices are currently maintaining their upward momentum, supported by lower-than-expected US core consumer price index (CPI) data. As of January 16, gold prices rose to $2,697/ounce, continuing the positive trend from the previous session.
Basic view:
According to the latest data from the US Bureau of Labor Statistics, the core CPI increased by 3.2% compared to the same period last year, lower than the forecast of 3.3%. This has reduced inflationary pressures and raised expectations that the US Federal Reserve's (FED) interest rate cutting cycle is still continuing. Bart Melek from TD Securities commented that the lower-than-expected CPI data is a positive signal for gold, as it reduces the strength of the US dollar and increases the attractiveness of gold to investors holding other currencies.
Technical Analysis:
On the 4-hour time frame, gold is trading above both the 34 EMA and the 89 EMA, indicating that the uptrend is still dominant. The price is approaching the resistance zone at the 61.8% Fibonacci level around $2,707. A break of this level could see gold move towards $2,785 (1.618 Fibonacci extension). Conversely, a rejection here could see the price fall back to the $2,660-$2,670 support zone.
Trading Strategy:
Buy: When the price retests the $2,670 support zone with a short-term target of $2,707 and a long-term target of $2,785.
Stop Loss: Place below $2,655 to manage risk.
The gold market remains sensitive to economic news, especially comments from the FED and upcoming inflation data, which will determine the next direction of gold prices.
Basic view:
According to the latest data from the US Bureau of Labor Statistics, the core CPI increased by 3.2% compared to the same period last year, lower than the forecast of 3.3%. This has reduced inflationary pressures and raised expectations that the US Federal Reserve's (FED) interest rate cutting cycle is still continuing. Bart Melek from TD Securities commented that the lower-than-expected CPI data is a positive signal for gold, as it reduces the strength of the US dollar and increases the attractiveness of gold to investors holding other currencies.
Technical Analysis:
On the 4-hour time frame, gold is trading above both the 34 EMA and the 89 EMA, indicating that the uptrend is still dominant. The price is approaching the resistance zone at the 61.8% Fibonacci level around $2,707. A break of this level could see gold move towards $2,785 (1.618 Fibonacci extension). Conversely, a rejection here could see the price fall back to the $2,660-$2,670 support zone.
Trading Strategy:
Buy: When the price retests the $2,670 support zone with a short-term target of $2,707 and a long-term target of $2,785.
Stop Loss: Place below $2,655 to manage risk.
The gold market remains sensitive to economic news, especially comments from the FED and upcoming inflation data, which will determine the next direction of gold prices.
Join my team to access free trading signals with:
👉🏻 Winning rate of up to 85%! Every day,
👉🏻 You'll receive 5-7 high-quality signals.
Click here to join the group: t.me/+2RkvhgfeFlkzZDZl
👉🏻 Winning rate of up to 85%! Every day,
👉🏻 You'll receive 5-7 high-quality signals.
Click here to join the group: t.me/+2RkvhgfeFlkzZDZl
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.