Gold Analysis Ahead Of CPI Data

Fundamental View:

The recent downturn in prices could signal that the Federal Reserve has concerns about inflation. Today U.S. Bureau of Labor Statistics will release an inflation report (CPI and Core CPI)

The data will play a key role in influencing the USD price dynamics and provide significant impetus to Gold ahead of this month's FOMC meeting on September 20-21. In the meantime, XAU/USD seems more likely than not to prolong its consolidative action confined within normal trading ranges for over one week now.

If the inflation report drops as forecasted, Gold may rise above the 1805 price zone immediately. An to the final upside target is the 1818 price zone.

As last average hourly earnings report was positive. I think inflation may rise, and Gold will drop. At least the market will price in inflation is going to grow. As a result, Gold is still falling. That means the market is pricing in positive CPI reports.

In the report print positive, our first target is 1775/1777 price zone to the downside. And final target 1760/1765 price zone.


While we see potential risks coming out of these price movements as they reevaluate market conditions before making any decisions regarding future rate hikes. There is also plenty of opportunities if you know what kind of ore mines make sense right now.

Technical View:

In the H4 chart, Gold is stuck in a triangle. Breaking below the triangle will open the door for the following support nearly 775 price zone. There we may expect some profit-taking. And finally, breaking below 1775 next help is identifying at 1765 price zone.

On the other hand, resistance is identifying at the 1805 price zone from the present price zone. Breaking above 1805 next resistance is placing at 1818. and critical support is located at the 1830/1835 price zone.