Gold Price Analysis: Gold Remains Vulnerable Whilst Below $1900

Gold Price Analysis: Gold price is back in the red, having reversed early bounce while keeping Tuesday’s trading range so far this Wednesday. As markets remain in a ‘sell everything mode’ ahead of the much-awaited US CPI data, gold price is also riding the offer wave, unable to take advantage of the ongoing US-China tussle and renewed weakness in the US dollar and the Treasury yields.

Gold Price Analysis

Investors resort to repositioning, as the US inflation data and the European Central Bank (ECB) policy meeting due tomorrow could stir markets. The US CPI report is expected to shed light on when the Fed will begin rolling back its monetary stimulus. Also, the Bank of England (BOE) policymaker Andy Haldane’s taper talk amid roaring economy added to the weight on the non-yielding gold.

The Technical Confluences Detector shows that gold price remains on track to incur deeper losses amid a bunch of strong resistance levels. The immediate support is seen at the SMA100 one-hour at $1888, below which the sellers will target the previous day low of $1884.

Gold Price Analysis

The intersection of the Fibonacci 23.6% one-month and Fibonacci 38.2% one-week around $1879 is likely to protect the further downside. Alternatively, gold bulls will have to scale two powerful upside barriers, in order to negate the bearish bias in the near term.

The first hurdle awaits at $1894, which is the confluence of the SMA5 one-day, Fibonacci 61.8% one-week and SMA5 four-hour. A firm break above the latter will expose the $1897 supply zone, where the Fibonacci 61.8% one-day and SMA10 one-day converge. The next significant barrier is placed at $1903, the meeting point of the previous day high and pivot point one-day R1.

Gold Price Forecast
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