Price of Gold Targets New Level of Multi-Month Highs, Canadian CPI Next.

Key Take-Aways

  • 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).

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.