Short

Gold at a Crossroads: Bearish Sentiment Ahead of CPI Data

Updated

I’m leaning towards a bearish outlook for gold. Here's why:

1. Moderate Inflation Expectations: Recent economic forecasts suggest that the CPI data will show a continued moderation in inflation. With the Federal Reserve's aggressive stance on curbing inflation through interest rate hikes, the likelihood of inflationary pressures easing is high. A stable or lower inflation rate diminishes the appeal of gold as an inflation hedge, making it less attractive to investors.

2. Strong Resistance at $2477: Gold is currently hovering around a significant resistance level at $2477. This level has historically acted as a strong barrier, and without a major catalyst like unexpected high inflation, it's unlikely that gold will break through this resistance. Instead, the market may see a pullback as investors take profits or adjust their positions in anticipation of the CPI release.

3. Historical Patterns: History has shown that when gold hits strong resistance levels in an environment of stabilizing inflation, the price often retraces. This pattern could repeat itself, especially if the CPI data confirms that inflation is under control, reducing the need for safe-haven assets.

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4. Failure to Make Higher Highs: Additionally, gold has struggled to make higher highs twice in the recent past, indicating a potential reversal. The inability to surpass previous highs further reinforces the bearish sentiment, as it suggests weakening momentum and a lack of buying interest at these levels.

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Bears tried to push it up and it fell back hard. It's currently now in bearish market on vwap and daily timeframe has a bearish candle.

Currently at a support if it breaks there's gonna be a big fall incoming.

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time to go down!!!

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cpi data neutral for both sides

Trade closed manually

pythonnnn

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