GOLD recovers after adjustment by CPI data

Aug 15XAUUSD recovered after a slight decline when the latest US CPI report dampened expectations that the Federal Reserve will cut interest rates sharply next month.

The U.S. Bureau of Labor Statistics released a report Wednesday saying the U.S. Consumer Price Index (CPI) rose 0.2% month-over-month and 2.9% year-over-year in July. Economists surveyed previously expected the index to increase 0.2% month-on-month and 3% year-on-year. Excluding food and energy costs, U.S. core CPI in July rose 0.2% month-on-month and 3.2% year-over-year, both in line with expectations. .
The Chicago Mercantile Exchange's "Fed Tracker" shows that the market now expects a 35% chance of the Federal Reserve cutting interest rates by 50 basis points in September, compared with a 50% chance before the data release. US CPI data.

However, a rate cut in September is a certainty; Current data shows that the Federal Reserve initially only intended to cut interest rates by 25 basis points, which has disappointed markets where expectations for a 50 basis point cut were previously higher. Cutting interest rates will more or less bring support to gold prices when the USD loses important support from the high interest rate environment.
On the other hand, the geopolitical situation still has many potential risks and gold is always a safe haven asset when geopolitical developments become complicated.

Analysis of technical prospects for XAUUSD
On the daily chart, although gold has corrected downwards before, maintaining price activity above the 0.50% Fibonacci extension is a positive signal for the short-term uptrend.

In the immediate future, gold will be limited by the technical level of 2,455 USD noted by readers in yesterday's edition and once gold breaks this level, it has the potential to increase further to the target level then around. Fibonacci extension level 0.618%.

In a negative case, gold could be sold below the $2,426 technical level if support at $2,448 is broken below. So traders who buy gold should be prepared for this scenario, but the main trend will still be bullish because 2,426USD is also the confluence of Fibonacci 0.382% and EMA21.

As long as gold remains above the EMA21 and within the price channel, its technical outlook remains bullish with notable positions listed below.
Support: 2,448 – 2,426USD
Resistance: 2,471USD

🪙SELL XAUUSD | 2461 - 2459

⚰️SL: 2465

⬆️TP1: 2454
⬆️TP2: 2449

🪙BUY XAUUSD | 2424 - 2426

⚰️SL: 2420

⬆️TP1: 2431
⬆️TP2: 2436

Aug 15

Trade active

Plan SELL Close 1/2 + 55pips. Move SL to Entry🔥

Aug 15

Comment

A FED MEMBER MAKES IMPORTANT COMMENTS ON INTEREST RATES
St. Louis Federal Reserve President Alberto Musallem said the time is near for the U.S. central bank to cut interest rates.

Aug 16

Comment

Gold prices pared gains on Thursday (August 15), as the dollar and bond yields rose after stronger-than-expected U.S. economic data could affect the scope of interest rate cuts from the Federal Reserve.

Aug 16

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Aug 16

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🔻The dollar held near a two-week high against the yen on Friday after posting its biggest daily gain against major currencies in four weeks, as strong U.S. economic data eased fears the economy was entering a recession.

Aug 18

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Ending last week (August 12 - August 17), world gold price closed at 2,507 USD/ounce, an increase of 2.8% after one week. Previously, there was a time when precious metals reached 2,508.9 USD/ounce, the highest ever. This is a new peak, surpassing the old record of 2,483 USD/ounce in the July 19 session.

Aug 19

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World gold prices started the new trading week in a down state, after rising violently and surpassing the 2,500 USD/oz mark for the first time in history last Friday. Experts are optimistic about the prospect of higher gold prices, predicting that new records could be set this year and next.

Aug 20

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World gold prices stabilized at the beginning of the week thanks to strong safe-haven demand and increasing expectations that the US Federal Reserve (Fed) would pivot its monetary policy.