Price of Gold Targets New Level of Multi-Month Highs, Canadian CPI Next.
- Above the $1,780 resistance, the price of gold began to rise again.
- On the 4-hours chart, a significant bullish trend line is developing with support close to $1,785.
- The Japanese yen appreciated against most of its rivals as USD/JPY had a significant fall.
- The Canadian CPI may rise from 6.9% to 7.4% in November 2022 (YoY).
Price Technical Analysis of Gold
The price of gold against the US dollar developed a base above $1,770. Once it crossed the $1,778 and $1,780 marks, the price began to rise steadily
The XAU/USD 4-hours chart shows that the price increased above the $1,785 resistance region. Even higher than the $1,800 mark, the price settled far above both the 100 and 200 simple moving averages (red, 4-hour) of the price.
The negative movement from the $1,824 swing high to the $1,773 low was clearly moved above by a move above the 50% Fib retracement line. On the upside, buyers may be present close to the $1,812 mark.
The $1,825 mark represents the next significant resistance. Any additional gains might push the market in the direction of the $1,840 resistance level, over which gold could recur at the $1,850 level of resistance.
On the downside, a preliminary support is located close to the $1,790 mark. On the same chart, a significant bullish trend line is also developing, with support located close to $1,785.
The $1,780 mark serves as the next significant support. The key support is close to $1,772, below which gold price may find it difficult to maintain its position above the $1,760 region.
When examining USD/JPY, there was a significant drop below the 135.00 support, and it appears that Japanese currency buyers are targeting further declines in the near future.
Economic News To Trade Today
- Forecast for US existing home sales in November 2022 (MoM), is 0% versus -5.9% previous.
- Forecast for the Canadian Consumer Price Index for November 2022 (MoM) is +0.4%, up from the previous +0.7%.
- Forecast +7.4% over +6.9% for the Canadian Consumer Price Index for November 2022 (YoY).
Author: Amogo Solomon
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