Resistance Continues to Hold XAU/USD Bulls at Bay
The precious metal is having a quiet start to the week with spot gold trading on either side of $1,920/oz. so far today. Gold volatility is currently sitting at a multi-month low, while the CCP indicator shows that gold is neither overbought or oversold. This may change mid-week however when the latest US inflation data is released. US core inflation is expected to fall to 5% from 5.3% in May y/y, while headline inflation is seen falling to 3.1% from 4% last month. Headline inflation hit a multi-decade high rate of 9.1% in June last year. A sharp fall in inflation, if it happens, would take the pressure off the Federal Reserve to tighten monetary policy further.
Gold remains trapped below a zone of resistance between $1,933/oz. and $1,940/oz. This short-term zone has held gold at bay for the last month with each attempted break higher thwarted as sellers reappear. The downward-sloping 20-day simple moving average, currently at $1.926.61, is also pushing down on the price of gold. Support is provided by the 38.2% Fibonacci retracement level at $1,903/oz and by the big figure $1,900/oz. price point. Below here sits the 200-dma at $1,868.76.
GOLD SELL 1927 - 1929💯💯
✅ TP1: 1922
✅ TP2: 1917
✅ TP3: 1912
🛑 SL: 1932
Gold remains trapped below a zone of resistance between $1,933/oz. and $1,940/oz. This short-term zone has held gold at bay for the last month with each attempted break higher thwarted as sellers reappear. The downward-sloping 20-day simple moving average, currently at $1.926.61, is also pushing down on the price of gold. Support is provided by the 38.2% Fibonacci retracement level at $1,903/oz and by the big figure $1,900/oz. price point. Below here sits the 200-dma at $1,868.76.
GOLD SELL 1927 - 1929💯💯 ✅ TP1: 1922
✅ TP2: 1917
✅ TP3: 1912
🛑 SL: 1932
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