Gold Price Holding Gains, US Inflation Data Declined

Key Take-Aways

  • The price of gold increased towards $1,915 before a decline below $1900
  • GBP/USD and EUR/USD may continue to rise in value.
  • In February 2023, the US CPI dropped from 6.4% to 6%.

Technical Analysis of Gold

The price of gold launched a big climb above the $1,850 resistance against the US Dollar. After the price closed above the $1,880 mark, it began to rise.

The price even closed above the $1,880 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the XAU/USD 4-hours chart.

A rise above the $1,900 resistance came at last. Prior to the start of a consolidation period, the price reached a high of $1,914. On the downside, a preliminary support is located close to the $1,895 mark.

In the same chart, a connecting bullish trend line is also developing, with support located close to $1,895. Below the $1,882 level, where there is a danger of a move towards the $1,875 level, is where the next significant support is located.

The gold price may struggle to stay above the $1,850 region below the next significant support, which is located close to the $1,865 level. The price of gold could decline near the $1,832 support in the scenario described.

Price is encountering resistance near the $1,915 mark on the upside. The price may move upward toward the $1,950 mark if it moves past the key barrier in the $1,920 region.

Looking at EUR/USD, the pair may soon try to break to the upside and may perhaps pass over the 1.0800 resistance area.

Economic News To Trade Today

Prediction +5.4% for the US Producer Price Index for February 2023 (YoY),

Prediction for the US Producer Price Index for February 2023 (MoM) is +0.3%, up from the previous +0.7%.

Prediction for US retail sales in February 2023 (MoM) is -0.3%, down from the previous +3.0%.

Amogo Solomon is a Broker-Dealer/Market Research analyst and writer in ACT Brokers with a background in Computer Science, Data Analytics, and Forex Broker Dealing. He specializes in Forex Dealing, markets Analysis, Currency research, forex fundamental and technical analysis, and Monitoring of Forex trends, Stocks, Equities, Cryptos, and Commodities. He possesses strong technical and analytical skills and is well known for his entertaining and informative analysis of the global economy, fiat currency, commodities, Stocks, Indexes, Futures, and Options markets. He held a Bachelor's degree in Computer Science and Nanodegree in Programming for Data Science Enterprise.