Spot Gold above $1300 on disappointing US inflation data

Slobodan Drvenica Windsor Brokers

GOLD

Spot Gold surged after disappointing US inflation data and cracked psychological $1300, posting new high at $1302, the highest since 26 Sep. The metal extended its steep ascend from $1260 into sixth straight day, retracing over 76.4% of $1313/$1260 downleg. Gold advanced on weaker dollar last week, with another sign of weak US inflation, which reduces hopes of rate hike in December and boosts US interest rate-change sensitive gold. Spot Gold is on track for strong weekly close (the first bullish week after being in red for one month) and reversal pattern is forming on weekly chart, which would further boost metal's price. Close above $1297 (Fibo 38.2% of $1357/$1260 descend) will generate bullish signal for further advance which now eyes strong barrier at $1309 (daily cloud top/Kijun-sen line), break of which will be another strong bullish signal. Meanwhile, the rally may take a breather, which is indicated by overbought slow stochastic on daily chart, but so far without firmer signal. Broken 55SMA offers solid support at $1295 which should contain dips, guarding 20SMA pivot at $1288.

Res: 1302; 1309; 1313; 1316
Sup: 1297; 1295; 1288; 1281

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD softens to near 1.3600 as BoE hints further rate cuts

The GBP/USD pair loses ground to near 1.3610 during the early Asian session on Monday. The Pound Sterling softens against the Greenback amid growing expectations of the Bank of England’s interest-rate cut. Traders will take more cues from the Fedspeak later on Monday.

Gold eyes acceptance above $5,000, kicking off a big week

Gold is consolidating the latest uptick at around the $5,000 mark, with buyers gathering pace for a sustained uptrend as a critical week kicks off. All eyes remain on the delayed Nonfarm Payrolls and Consumer Price Index data from the United States due on Wednesday and Friday, respectively.

Top Crypto Gainers: Aster, Decred, and Kaspa rise as selling pressure wanes

Altcoins such as Aster, Decred, and Kaspa are leading the broader cryptocurrency market recovery over the last 24 hours, as Bitcoin holds above $70,000 on Monday, up from the $60,000 dip on Thursday.

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.