SPOT GOLD holds positive near-term tone ahead of US inflation data
|GOLD
Spot Gold extended recovery leg and hit one-week high at $1336 on Wednesday, maintaining positive near-term tone on weaker dollar.
Tuesday’s close above falling 10SMA and today’s probe above sideways-moving 20SMA ($1334) were positive signals as daily techs are bullishly aligned.
However, the yellow metal failed to hold break above 20SMA at first attempt, due to lack of momentum.
Focus turns towards US inflation data, due later today, which is expected to generate clearer signal about Fed’s view on monetary policy in coming months.
Stronger than expected inflation numbers in January could be a catalyst for the Fed to speed up tightening policy and put gold price under increased pressure.
Conversely, inflation miss today would disappoint those advocating for more aggressive monetary policy and boost gold price.
Bullish scenario would open targets at $1343 (Fibo 61.8% of $1366/$1307 bear-leg) and $1350/51 (01/01 Feb double-top).
Conversely, weaker tone could be expected on close below 10SMA ($1327) which would risk bearish acceleration towards 1321 (Tuesday’s low) and $1314 (Monday’s low) in extension.
Res: 1331; 1334; 1337; 1343
Sup: 1327; 1321; 1316; 1314
Interested in XAUUSD technicals? Check out the key levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.