XAU/USD outlook: Limited losses after US CPI data
|Gold fell in immediate reaction to higher than expected US inflation in June that adds to Fed’s existing stance of keeping interest rates on hold until they have clearer picture of tariff impact on consumer prices.
Fresh weakness broke through pivotal supports at $3340 zone (hourly higher base / Fibo 38.2% of $3283
/ $3374 hit session low at $3334, but subsequent bounce that left long-tailed hourly hammer candle
warns that we have not seen clear break of $3340 pivot yet (sustained break below $3340 is needed to complete hourly bearish failure swing pattern and signal reversal).
However, upside reversal also lacks confirmation (requires bounce and hourly close above minimum $3350).
Although, gold was hit by higher than expected consumer prices, growing uncertainty about Trump’s tariffs continues to fuel safe-haven demand and offset negative impact for now
Overall picture is predominantly bullish, as action remains above rising daily Ichimoku cloud and 14-d momentum is still in positive territory, but hourly studies are mixed.
Look for initial bullish signal on lift above $3353 that would bring in play retest of $3365 (today’s highs) and open way for fresh attack at $3374 tops.
Conversely, firm break below $3340 will be bearish.
Res: 3353; 3365; 3374; 3392
Sup: 3340; 3337; 3332; 3328
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.