Price of Gold Restricted Below $1,700, US Consumer Price Index Next
- From the $1,729 resistance area, gold’s price began a new descent.
- On the 4-hours chart, it fell below a significant bullish trend line at $1,692.
- USD/JPY surged beyond 145.00 and reached a new multi-year high.
- In September 2022, the US Consumer Price Index (CPI) could rise by 8.1%. (YoY).
Technical Analysis of Gold
Against the US Dollar, the gold price found it difficult to increase its momentum beyond $1,725. Near $1,729, the price formed a peak and a downward correction began.
The price of XAU/USD went below the $1,700 support area, the 100 simple moving average (red, 4-hours), and the 200 simple moving average, according to the 4-hours chart (green, 4-hours).
On the same chart, there was a noticeable decline below a crucial bullish trend line around $1,692. Price dropped below the critical upward movement from the $1,614 swing low to $1,729 high, which is represented by the 50% Fib retracement level.
On the downside, a preliminary support is located close to the $1,658 mark. It is close to the important upward movement from the $1,614 swing low to $1,729 high 50% Fib retracement level. Near $1,650 is the next significant support, below which the price may continue to decline quickly.
In the aforementioned scenario, the price might drop to around $1,620. On the upside, buyers may come into play close to the $1,680 mark.
Near the $1,690 mark, there is the next significant barrier. Any additional advances might push the market in the direction of the $1,700 resistance level, over which gold could rise towards $1,730.
Regarding USD/JPY, the pair moved to a new multi-year high after experiencing a significant gain above the 145.00 resistance zone.
Economic News To Trade Today
- US Consumer Price Index for September 2022 (MoM): forecast is +0.2%, up from the previous +0.1%.
- Forecast for the US Consumer Price Index for September 2022 (YoY) is +8.1%, up from the previous +8.3%.
- US Consumer Price Index Excluding Food and Energy for Sep 2022 (YoY) – Forecast +6.5%, up from +6.3% in the previous period.
Author: Amogo Solomon
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