XAU/USD | Gold Reacts Strongly From $4325,My Bias is now Bullish

Sep 10

By analyzing the #Gold chart on the 6H timeframe, we can see that after dropping toward $4325, buyers stepped in strongly and Gold has now recovered toward $4363.

In my view, this reaction is positive and my short-term bias has turned bullish. The nearest upside targets I’m watching are $4375, $4390, $4400, $4420 and $4440.

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The important demand zones are around $4337 – $4350, followed by $4310 – $4325. On the upside, the main supply areas are around $4390 – $4410, followed by $4420 – $4445.

As long as buyers continue defending the current demand structure, I expect Gold to gradually move toward the higher targets.

Sep 11

Trade active

By analyzing the #Gold chart on the 6H timeframe, we can see that Gold returned to the $4337 – $4376 demand zone, reacted positively again and is currently trading around $4351.

Today’s CPI is the main catalyst. The market expects roughly 0.4% headline CPI and 0.2% core CPI MoM.

If CPI, especially Core CPI, comes in hotter than expected, rate-hike expectations could increase, supporting the Dollar and putting pressure on Gold. In that case, $4337, $4325 and $4310 become the main downside levels.

If this analysis has been useful so far, give it a Boost to support my work. 🙌

If CPI comes in softer than expected, rate-hike expectations could ease and Gold may continue higher toward $4375, $4390, $4400, $4420 and $4440.

For now, there is no need to force a bias. The CPI reaction should give us the next direction.