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Gold Awaits US CPI Report, $2,530 Presents Resistance

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Aayush Jindal

Key Highlights

  • Gold is consolidating gains below the $2,530 resistance.
  • A key contracting triangle is forming with support at $2,495 on the 4-hour chart.
  • Oil prices might extend losses and revisit the $65.00 support.
  • The US Consumer Price Index might increase by 2.6% in August 2024 (YoY), down from 2.9%.

Gold Price Technical Analysis

Gold prices started a consolidation phase below $2,530 against the US Dollar. The price stayed above the $2,480 zone but struggled to start a fresh increase.

The 4-hour chart of XAU/USD indicates that the price remained stable above the 100 Simple Moving Average (red, 4 hours) and the 200 Simple Moving Average (green, 4 hours). Recently, there was an upward move within a range and the price climbed above $2,500.

However, the bears remained active below the $2,520 and $2,530 resistance levels. There is also a key contracting triangle forming with support at $2,495 on the same chart.

The main support is now near $2,480. A downside break below the $2,480 support might call for more downsides. The next major support is near the $2,465 level and the 200 Simple Moving Average (green, 4 hours).

Any more losses might send gold prices toward $2,420. On the upside, immediate resistance is near the $2,520 level. The first major resistance sits near the $2,530 level.

A clear move above the $2,530 resistance could open the doors for more upsides. The next major resistance could be near $2,550, above which the price could rally toward the $2,565 level. Any more gains might send Gold toward the $2,580 resistance.

Looking at Oil, the price extended losses below the $68.50 level and there are chances of more downsides in the near term.

Economic Releases to Watch Today

  • US Consumer Price Index for August 2024 (MoM) – Forecast +0.2%, versus +0.2% previous.
  • US Consumer Price Index for August 2024 (YoY) – Forecast +2.6%, versus +2.9% previous.
  • US CPI Ex Food & Energy for August 2024 (YoY) – Forecast +3.2%, versus +3.2% previous.
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