Gold rallies up to 61.8% retracement at 1343.00
|XAUUSD, H4
Gold fell from $1,333.00 to $1,318.00 after the U.S. CPI, with the contract initially taking its cue from the dollar’s move higher. Since then, prices have recovered to $1,337.60 highs as risk taking levels deteriorate, resulting in safe-haven buying. Bigger picture, the hotter CPI numbers should be supportive of gold, which has historically been seen as an inflation hedge.
Therefore the technical view supports the positive momentum of the XAUUSD,since it has been seen in an uptrend since February 8, with Bollinger Bands being extended further up today despite the massive swing low seen on the release of the data. This could be considered as a sign that bulls gaining the major control of the pair. The asset is moving in the upper Bollinger Bands pattern since Monday and also above all 3 SMAs, i.e. 20, 50 and 200 periods. It has currently at 1340.00 level after breaking the 50% Fibbonacci retracement at 1336.45 set since January’s peak. A Closing today above the 50% Fibonacci level , could suggests a retest of 61.8 Fibonacci level and also of the swing highs seen in January up to 1350-1360.00 area.
Nevertheless, Short-term momentum indicators are indicating further upside momentum, with the MACD oscillator turning positive.
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