Gold Price Forecast: XAU/USD finds support at $1720 with eyes on US CPI.

- Advertisement -
  • Gold regains strength after rejection above $1,730.
  • The dollar with modest falls on Tuesday.
  • Volatility is expected ahead with the US inflation data.

The Prayed is trading in the area of ​​daily highs at $1,727, after gaining support at $1,720. The pullback came from almost two-week highs reached on Monday at $1,735. Traders await key US data.

At 12:30 GMT, the evolution of inflation in the US in August will be known. The market consensus is that the annual rate of the Consumer Price Index goes from 8.5% to 8.1%. The data has great potential to affect the market and generate volatility.

- Advertisement -

The dollar it was weakened in recent sessions, in anticipation of this event, which could reaffirm the theory of a peak in inflation, which would cause the Federal Reserve to slow down the pace of monetary tightening. However, whatever the number, it is estimated that for next week’s FOMC meeting a 75 basis point hike will remain the base case.

No power with $1730

The Monday gold hit the highest since late August and climbed to $1735, but failed to hold and returned below $1,730. This last level is key, and the 20-day moving average is also passing through there. A consolidation above would point to more gains, with a possible target in the $1745 area.

- Advertisement -

Should it fail to hold above $1,730 again, rallies will remain unstable. The first support appears at $1720. Underneath the area of ​​$1710 and then $1700 will be exposed.

Technical levels

XAU/USD

Overview
Today last price 1727.39
Today Daily Change 2.81
Today Daily Change % 0.16
Today daily open 1724.58
trends
Daily SMA20 1732.03
Daily SMA50 1742.21
Daily SMA100 1793.94
Daily SMA200 1833.26
levels
Previous Daily High 1735.17
Previous Daily Low 1712.02
Previous Weekly High 1729.57
Previous Weekly Low 1691.47
Previous Monthly High 1807.93
Previous Monthly Low 1709.68
Daily Fibonacci 38.2% 1726.33
Daily Fibonacci 61.8% 1720.86
Daily Pivot Point S1 1712.68
Daily Pivot Point S2 1700.77
Daily Pivot Point S3 1689.53
Daily Pivot Point R1 1735.83
Daily Pivot Point R2 1747.07
Daily Pivot Point R3 1758.98

Source: Fx Street

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles