Gold: The multi-year high at $1,703.18 can be retested

FXStreet Team FXStreet

The yellow metal has recovered nicely after plummeting in the last two weeks. Gold has room to retest the multi-year high at $1,703.18, in the opinion of Valeria Bednarik from FXStreet.

Key quotes

“In the weekly chart, spot gold has recovered above a bullish 20 SMA, while technical indicators have U-turned, the Momentum bouncing from its mid-line and the RSI recovering into positive ground.”

“In the daily chart, the metal has also recovered above its 20 SMA, located in the 1,590.00 area. Technical indicators have erased oversold conditions, but lost directional strength after reaching neutral readings.”

“The weekly high at 1,643.90 is the immediate resistance ahead of 1,660. Beyond this last, spot has room to re-test the multi-year high at 1,703.18.”

“The 1,606.60 level provides support ahead of the daily 20 SMA. Below this last, the bearish case will be stronger, with the 1,500 level at sight.”

Author

FXStreet Team

FXStreet

EUR/USD climbs to daily highs on US CPI

EUR/USD now accelerates it rebound and flirts with the 1.1880 zone on Friday, or daily highs, all in response to renewed selling pressure on the US Dollar. In the meantime, US inflation figures showed the headline CPI rose less than expected in January, removing some tailwinds from the Greenback’s momentum.

GBP/USD clings to gains above 1.3600

GBP/USD reverses three consecutive daily pullbacks on Friday, hovering around the low-1.3600s on the back of the vacillating performance of the Greenback in the wake of the release of US CPI prints in January. Earlier in the day, the BoE’s Pill suggested that UK inflation could settle around 2.5%, above the bank’s goal.

Gold: Upside remains capped by $5,000

Gold is reclaiming part of the ground lost on Wednesday’s marked retracement, as bargain-hunters seem to have stepped in. The precious metal’s upside, however, appears limited amid the slightly better tone in the US Dollar after US inflation data saw the CPI rise less than estimated at the beginning of the year.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

The weekender: When software turns the blade on itself

Autonomous AI does not just threaten trucking companies and call centers. It challenges the cognitive toll booths that legacy software has charged for decades. This is not a forecast. No one truly knows the end state of AI.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.