Price of Gold Restricted Below $1,700, US Consumer Price Index Next

Key Take-Aways

  • 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.
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.