One final recovery wave, gold will break out
Fundamental analysis:
Gold surged over 25 points yesterday after CPI data was released worse than expected. This led the market to believe that the FED may soon end its tightening process in the near future.
Annual core inflation has decreased from 3.7% to 3.2%, while overall inflation has also slightly decreased to 3.8% per year. Although this figure is still far from the expected 2%, there are clear positive signals. This is partly due to the significant decrease in energy prices recently.
Today, we have some other important news such as PPI and retail sales, which are both forecasted to be negative. Gold prices may continue to be supported.
- Technical analysis:
Gold has seen its second consecutive day of price increase, extending its upward momentum. The price reached the 50% Fibonacci retracement level of the previous decline and paused, acting as a temporary resistance for gold. Below 1950 will serve as support for gold.
Gold surged over 25 points yesterday after CPI data was released worse than expected. This led the market to believe that the FED may soon end its tightening process in the near future.
Annual core inflation has decreased from 3.7% to 3.2%, while overall inflation has also slightly decreased to 3.8% per year. Although this figure is still far from the expected 2%, there are clear positive signals. This is partly due to the significant decrease in energy prices recently.
Today, we have some other important news such as PPI and retail sales, which are both forecasted to be negative. Gold prices may continue to be supported.
- Technical analysis:
Gold has seen its second consecutive day of price increase, extending its upward momentum. The price reached the 50% Fibonacci retracement level of the previous decline and paused, acting as a temporary resistance for gold. Below 1950 will serve as support for gold.
Trade active:
SELL GOld scalping 1968-1970 right now