Gold: $4,275 sets up a make-or-break test for sellers

Olalekan Akinola Independent Analyst

Gold is down over 0.50% this morning, with sellers reversing part of Friday’s post-CPI rebound as markets increase their bets on a Federal Reserve rate hike in early European trading. Gold jumped higher following last week’s US CPI release, but as I noted in my postCPI reaction analysis on Friday, resistance around $4,405 could stall further gains.

Price is now trading around $4,312, after Friday’s high was capped near $4,403 as sellers defended the descending trendline. Gold is also under pressure from a stronger Dollar, with the market-implied probability of a September rate hike rising slightly from 87.3% on Friday to 88.7% at the time of writing.

Price has been trading within a downward channel since the beginning of September, with sellers remaining in control after pushing prices down from $4,698 in late August. Today’s selling pressure has taken price back below the 50-period SMA around $4,350, bringing the lower band of the channel near $4,275 into focus.

It could be a classic make-or-break test for sellers if price reaches $4,275. This level is not only the base of the channel but also a horizontal support that held price on August 10, August 14 and, most recently, September 2. It remains an important level for buyers to defend. A sustained break below it would strengthen the bearish structure and open the door to a deeper decline.

Author

Olalekan Akinola

Independent Analyst

Olalekan Akinola is a financial-markets analyst and writer with five years of experience covering forex, commodities, and global macroeconomic developments.

AUD/USD shows resilience below 38.2% Fibo. near mid-0.7100s

The AUD/USD pair touches a one-and-a-half-week low, around the 0.7140 region during the Asian session on Monday, though it lacks follow-through. Spot prices currently trade just above mid-0.7100s, down nearly 0.25% for the day.

USD/JPY: Japanese Yen edges lower vs USD amid Middle East jitters as Fed, BoJ meetings loom

The USD/JPY pair attracts some buyers at the start of a new week and climbs closer to the 154.00 mark during the Asian session, reversing a part of Friday's losses. Spot prices, however, remain confined in a range held over the past week or so and within striking distance of a nearly seven-month low, touched last Tuesday, as traders await this week's key central bank events.

Gold: Fed’s rate decision to drive the next move

Gold reflects a subdued performance at the start of the Federal Reserve’s (Fed) monetary policy week at around $4,330. Fed’s interest rate expectations heavily influenced last week after the release of the hot United States (US) Producer Price Index (PPI) and Consumer Price Index (CPI) reports for August.

Pi Network extends gains as ecosystem development supports recovery

Pi Network (PI) extends its recovery on Monday, trading above $0.097 after two consecutive weeks of gains. Continued ecosystem development and improved developer tools are boosting utility. Meanwhile, the technical indicators point to a tentative recovery, but overhead Exponential Moving Averages remain a challenge and cap PI gains.

Canada CPI expected to show steady inflation in August

Canada’s August Consumer Price Index figures will be the focus of attention when published on Monday. Indeed, Statistics Canada data will provide markets with an update on price pressures following the Bank of Canada’s September 2 meeting, when officials kept the interest rate steady at 2.25%, broadly in line with analyst consensus.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.