Gold recovers from $2,353 – Is a further decline coming?

Gold dropped to $2353 and bounced back to $2380
Markets awaiting PCE numbers.
$2400 likely to come as resistance.
Bears still looking for selling higher.

Sunil Kumar Dixit SK Charting

In previous reports we have been emphasizing our bias of bearish selling pressure dominating from $2430-$2435 and markets have done exactly as per our projections by reaching $2353 yesterday.

Today's opening witnessed some dead cat bounce that triggerred a relief rally towards $2380 and it was soon followed by sideways consolidation above horizontal support zone $2368-$2362.

As markets await key data results on PCE which is widely believed to be an important tool used by Fed to gauge inflation and further guidance on policy, we expect volatility to increase with the opening of US markets.

Immediate resistance may come at $2388-$2392 while strong break above this resistance will increase the possibility of extended recovery to $2400 followed by next overhead resistance $2410.

On the flip side, rejection from key resistance zone may trigger renewed selling pressure towards swing low $2353 while break below this low will send gold down direct to $2335-$2330.

Major support is seen positioned at 100 Day SMA $2324.

Disclaimer: The views expressed are based on prevailing trend analysis and price action. Please do not take it as trading advice.

Author

Sunil Kumar Dixit

SK Charting

Sunil Kumar Dixit is Chief Technical Strategist and founder of SK Charting, a research firm based in India. He tracks Precious Metals, Energy, Indices and Currency Pairs. He also participates as an expert panellist on Channel Television, Nigeria.

EUR/USD treads water above 1.1850 amid thin trading

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day.

GBP/USD flat lines as traders await key UK and US macro data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.365 in Monday's European trading. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold sticks to intraday losses; lacks follow-through

Gold remains depressed through the early European session on Monday, though it has managed to rebound from the daily trough and currently trades around the $5,000 psychological mark. Moreover, a combination of supporting factors warrants some caution for aggressive bearish traders, and before positioning for deeper losses.

Bitcoin, Ethereum and Ripple consolidate within key ranges as selling pressure eases

Bitcoin and Ethereum prices have been trading sideways within key ranges following the massive correction. Meanwhile, XRP recovers slightly, breaking above the key resistance zone. The top three cryptocurrencies hint at a potential short-term recovery, with momentum indicators showing fading bearish signs.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.