Following our recent analysis, Gold has shown signs of a bullish shift in momentum, quickly recovering from a dip despite the U.S. CPI coming in above expectations. Today's focus shifts to existing home sales data, which may influence Gold's trajectory.
Technical analysis: Gold is currently recovering from its downward push to the $2000 mark after not being able to break the $2060 level, having found strong support right above the $2000 level. The metal's recent rally from the $2000 support suggests a positive market sentiment. For a continued uptrend, Gold needs to break past the $2040 resistance convincingly and then try another time to break past the $2060 level. If it fails to sustain this breakout, the $2040 support might be retested, providing a buying opportunity.
Market Context: Last week's higher U.S. CPI data has not significantly impacted Gold prices, indicating its role as a potential hedge against inflation. With today’s release of existing home sales data, market participants will be keen to assess the impact on the USD and consequently on Gold. As the global tensions rise with Russia and Ukraine, China and Taiwan, the Middle East, gold is gaining strength.
Our position: We retain a long-term optimistic view on Gold. We have entered some long positions yesterday as the price made a big correction and continue to look to capitalize on pullbacks for potential long entries. The metal's reaction to the $2060 level will be critical in determining our next moves, as we continue to evaluate Gold's strength against ongoing economic developments.
Technical analysis: Gold is currently recovering from its downward push to the $2000 mark after not being able to break the $2060 level, having found strong support right above the $2000 level. The metal's recent rally from the $2000 support suggests a positive market sentiment. For a continued uptrend, Gold needs to break past the $2040 resistance convincingly and then try another time to break past the $2060 level. If it fails to sustain this breakout, the $2040 support might be retested, providing a buying opportunity.
Market Context: Last week's higher U.S. CPI data has not significantly impacted Gold prices, indicating its role as a potential hedge against inflation. With today’s release of existing home sales data, market participants will be keen to assess the impact on the USD and consequently on Gold. As the global tensions rise with Russia and Ukraine, China and Taiwan, the Middle East, gold is gaining strength.
Our position: We retain a long-term optimistic view on Gold. We have entered some long positions yesterday as the price made a big correction and continue to look to capitalize on pullbacks for potential long entries. The metal's reaction to the $2060 level will be critical in determining our next moves, as we continue to evaluate Gold's strength against ongoing economic developments.