In light of the last session's analysis, Gold has displayed resilience, with prices stabilizing despite a higher than expected U.S. CPI which typically would strengthen the USD and pressure Gold prices. Instead, we see Gold maintaining its ground, indicative of underlying strength in the commodity market.
Technical analysis: The chart shows Gold oscillating around the $2055 level, having recently rallied from a strong support near $2016. This rebound points to a bullish sentiment among traders. The near-term resistance is pegged at $2060, a level that Gold has attempted to breach but with limited success so far. The metal's ability to hold above the $2040 support is key; a sustained position above this level could attract further buying, potentially testing the $2060 mark again. Should it break, we could see a move towards higher resistance levels. Conversely, a break below $2040 could see a retest of the $2016 lows, particularly if the USD gains momentum off the back of economic data.
Our position: With a cautiously bullish outlook on Gold, we're considering entries on dips, anticipating that the metal may find additional buyer interest at lower levels. The recent CPI figures have not dampened bullish enthusiasm as expected, suggesting that Gold may continue to serve as a hedge against inflation. The focus remains on the $2040 support and the $2060 resistance for indications of Gold's next significant move.
Technical analysis: The chart shows Gold oscillating around the $2055 level, having recently rallied from a strong support near $2016. This rebound points to a bullish sentiment among traders. The near-term resistance is pegged at $2060, a level that Gold has attempted to breach but with limited success so far. The metal's ability to hold above the $2040 support is key; a sustained position above this level could attract further buying, potentially testing the $2060 mark again. Should it break, we could see a move towards higher resistance levels. Conversely, a break below $2040 could see a retest of the $2016 lows, particularly if the USD gains momentum off the back of economic data.
Our position: With a cautiously bullish outlook on Gold, we're considering entries on dips, anticipating that the metal may find additional buyer interest at lower levels. The recent CPI figures have not dampened bullish enthusiasm as expected, suggesting that Gold may continue to serve as a hedge against inflation. The focus remains on the $2040 support and the $2060 resistance for indications of Gold's next significant move.