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13.09.202316:03 Forex Analysis & Reviews: Gold Bullish On Higher US Inflation

The price of gold is trading in the green at 1,913 on the H1 chart. XAU/USD registered sharp movements in both directions around the US inflation data. Technically, the price action signaled exhausted sellers. Still, a strong rebound needs strong confirmation.

Fundamentally, you knew from my previous analysis that the US economic data could be decisive. The CPI rose by 0.6% matching expectations, CPI y/y reported a 3.7% growth, beating the 3.6% growth estimates, while Core CPI increased by 0.3%, exceeding the 0.2% growth forecasts. In addition, the UK GDP reported a 0.5% drop versus the 0.2% drop expected.

XAU/USD Downside Seems Over

Exchange Rates 13.09.2023 analysis

Technically, the price of gold registered a false breakout with great separation below the weekly S1 (1,907) and through the pitchfork's lower median line, indicating that the sell-off could be over.

The former high of 1,915 represents a static resistance. In the short term, it could move sideways around 61.8% (1,911).

XAU/USD Forecast

A new higher high, a bullish closure above today's high of 1,915 activates a larger rebound and is seen as a new buying opportunity.

*La presente analisi del mercato ha un carattere esclusivamente informativo e non rappresenta una guida per l`effettuazione di una transazione.

Ralph Shedler,
Analytical expert of InstaSpot
© 2007-2024
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