The price of the “yellow metal” is at a 5-week low and trading just above the round number of $1,830 after U.S. consumer prices rose as per the market consensus in January, raising prospects that the Federal Reserve will continue to ease its aggressive monetary policy stance in the following meetings. The publication of the US CPI on Tuesday Feb. 14th created volatility in the markets around publication time creating a doji candlestick on the gold chart.
From the technical point of view the price is trading around a strong technical support level on the chart which consists of the crossing of the lower band of the Bollinger bands with the 38.2% of the daily Fibonacci retracement level. The Stochastic oscillator is trading in the extreme oversold levels for the last 10 days indicating that the bullion might have some potential to correct to the upside in the following sessions. If this is the case we might see some resistance around the $1,880 price area which consists of the 23.6% of the Fibonacci retracement level and the potential crossing of the 20 and 100 day moving averages.
In the case that the price fails to rebound on the 38.2% of the Fibonacci and continues its bearish movement then we might see some support around the $1,800 area which is the psychological support of the round number, the area just above the 50% of the Fibonacci retracement level and also the possible cross of the lower band of Bollinger bands and the 100 day moving average.
From the technical point of view the price is trading around a strong technical support level on the chart which consists of the crossing of the lower band of the Bollinger bands with the 38.2% of the daily Fibonacci retracement level. The Stochastic oscillator is trading in the extreme oversold levels for the last 10 days indicating that the bullion might have some potential to correct to the upside in the following sessions. If this is the case we might see some resistance around the $1,880 price area which consists of the 23.6% of the Fibonacci retracement level and the potential crossing of the 20 and 100 day moving averages.
In the case that the price fails to rebound on the 38.2% of the Fibonacci and continues its bearish movement then we might see some support around the $1,800 area which is the psychological support of the round number, the area just above the 50% of the Fibonacci retracement level and also the possible cross of the lower band of Bollinger bands and the 100 day moving average.