XAU/USD outlook: Bulls hold grip ahead of key US inflation data
XAU/USD
Gold remains at the front foot and edges higher in early Monday, extending recovery into third straight day.
The yellow metal regained ground after last week’s sharp fall, boosted by growing signals that the Fed may opt for 50 basis points rate hike in September.
Weak US economic data warn of worse than expected scenario, with last week’s talks of US economy entering recession (after Fed’s long-lasting calming signals of soft landing) sparking panic in the market.
Although the situation is calmer now, investors remain cautious.
Markets await release of US inflation report for July, which is expected to shed more light on Fed’s next steps on monetary policy.
The metal price is also supported by geopolitical tensions, which adds to overall positive outlook.
Technical studies on daily chart are in full bullish setup and contribute to positive picture, as fresh push higher on Monday broke above Fibo 61.8% of $2483/$2353 ($2433), with close above this level to add to bullish signals.
However, markets are likely to move at a slower pace ahead of release of US CPI data.
Next targets lay at $2452 (Fibo 76.4%), $2477 (Aug 2 spike high), guarding new all-time high at $2483.
Rising 10DMA ($2422) and broken Fibo 50%) mark solid supports which should keep the downside protected and maintain bullish structure.
Res: 2452; 2462; 2477; 2483.
Sup: 2433; 2422; 2418; 2403.
Interested in XAU/USD technicals? Check out the key levels
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.
