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Gold Aims for Critical Upside Break, US CPI Next

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Aayush Jindal

Key Highlights

  • Gold is attempting a fresh increase above the $2,440 support zone.
  • A major bullish trend line is forming with support at $2,400 on the 4-hour chart.
  • Oil prices extended gains and climbed above the $77.50 resistance.
  • The US Consumer Price Index could increase by 2.9% in July 2024 (YoY), down from +3%.

Gold Price Technical Analysis

Gold prices found support near the $2,380 level against the US Dollar. The price formed a base and recently started a fresh increase above $2,420.

The 4-hour chart of XAU/USD indicates that the price settled above the $2,440 level, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours). It even surpassed the $2,465 resistance zone.

Finally, the bears appeared near the $2,475 zone. The price is now consolidating and eyeing for more upsides. Immediate resistance is near the $2,475 level.

The first major resistance sits near the $2,485 level. A clear move above the $2,485 resistance could open the doors for more upsides. The next major resistance could be near $2,500, above which the price could accelerate higher toward the $2,520 level. Any more gains might send Gold toward the $2,550 resistance.

On the downside, there is a key support forming near the $2,440 level. The main support is now near $2,400. There is also a major bullish trend line forming with support at $2,400 on the same chart.

A downside break below the $2,400 support might call for more downsides. The next major support is near the $2,380 level. Any more losses might send gold prices toward $2,365.

Looking at Oil, the bulls remained in action, and they were able to push the price above the $77.50 and $77.65 resistance levels.

Economic Releases to Watch Today

  • US Consumer Price Index for July 2024 (MoM) – Forecast +0.2%, versus -0.1% previous.
  • US Consumer Price Index for July 2024 (YoY) – Forecast +2.9%, versus +3% previous.
  • US Consumer Price Index Ex Food & Energy for July 2024 (YoY) – Forecast +3.2%, versus +3.3% previous.
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