- Gold's hourly chart shows the metal is stuck in a bearish channel.
- A break above $1,647 is needed to confirm a bullish breakout.
Gold is flashing green in Asia, but the bias remains bearish with prices still trapped in a falling channel on the hourly chart.
At press time, the yellow metal is trading at $1,642 per Oz, representing 0.45% gains on the day.
While the recovery from the overnight low of $1,625 is encouraging, the metal is yet to challenge the falling channel resistance at $1,647. An hourly close above that level would imply an end of the pullback from recent highs near $1,690 and would shift risk in favor of a rise to $1,660 (a lower high on the hourly chart).
A breakout will likely remain elusive if prices find acceptance under the session low of $1,634. That would validate the bearish reversal pattern seen on the daily chart and could yield deeper declines toward $1,611 (Jan. 8 high).
Hourly chart
Daily chart
Trend: Bearish
Technical levels
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD now shifts its focus to 0.6700
AUD/USD advanced for the third consecutive session on Wednesday, reaching four-month highs in levels shy of the 0.6700 hurdle ahead of the release of the key labour market report in Australia on Thursday.
EUR/USD looks bid and retargets 1.0900
The strong CPI-driven pullback in the Greenback allowed EUR/USD to maintain its multi-session rebound well in place, approaching the key 1.0900 region on Wednesday.
Gold reaches fresh monthly highs, aims for $2,400
Gold trades modestly higher on the day above $2,360 in the American session. The data from the US showed that annual inflation edged lower to 3.4% in April as expected. The benchmark 10-year US Treasury bond yield stays in the red below 4.4%, allowing XAU/USD to keep its footing.
Bitcoin price reclaims territory above $64K after April CPI release
Bitcoin (BTC) price has shown strength, displaying a god candle on Wednesday during the early hours of the American session. Notably, it is an interesting turn considering how poorly BTC has been performing during this session in the recent weeks.
April CPI: It's a start
The first CPI report of Q2 should be seen as welcome news by the FOMC. The headline CPI rose 0.3% in April, a tenth below consensus expectations, while the core CPI also increased 0.3%, in line with expectations but a downshift from the pace registered in Q1.