FX:XAUUSD is still holding very strong even amid strong news. The range of 2365 - 2328 is being formed. Buyers and sellers are fighting for the lower level.
Today the market is waiting for PMI and Initial Jobless Claims. Yesterday we got a high CPI of 0.4% instead of 0.3% and an inflation rate of 3.5%, which is a generally unsatisfactory scenario for the market and against this background the dollar is strengthening strongly. Gold shook a bit, but the bulls continue to hold the price above 2328. It is not known how long they will last, as the next batch of important news is ahead. Gold may test the support as part of the correction, but on the background of high interest in gold as a hedge asset amid geopolitical and economic problems, theoretically, gold may continue its growth.
Resistance levels: 2345, 2365, 2375 Support levels: 2328, 2303
At the moment the price is in a range. A breakdown of support may weaken the price a bit to 2300, but a breakdown of resistance may push the price up.
Regards R. Linda!
Comment
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Ahead, at 12:30 GMT PMI and Initial Jobless Claims
On the back of the high inflation of 3.5% and CPI of 0.4% we saw yesterday, PMI may be higher than the expected 0.3%. That would also be reflected in the overall strength of the dollar index.
But the Initial Jobless Claims are starting to get confusing. Traders are expecting 216K vs. 221K in the previous period. This figure has held in the average range of 210-220K for two months.
Data below 216K will be seen as bullish for the dollar Data above 216K will be seen as bearish for the dollar. The market will react accordingly
Trade closed: target reached
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Interim goal achieved. Price is testing the resistance of the range