- Gold price started a fresh increase above the $1,780 resistance.
- A major bullish trend line is forming with support near $1,785 on the 4-hours chart.
- USD/JPY declined heavily and the Japanese yen gained against most its peers.
- Canada’s CPI could increase 7.4% in Nov 2022 (YoY), up from 6.9%.
Gold Price Technical Analysis
Gold price formed a base above the $1,770 level against the US Dollar. The price started a steady increase above the $1,778 and $1,780 levels.
The 4-hours chart of XAU/USD indicates that the price gained pace above the $1,785 resistance zone. The price even moved above the $1,800 level and settled well above the 100 simple moving average (red, 4-hours) plus the 200 simple moving average (green, 4-hours).
There was a clear move above the 50% Fib retracement level of the downward move from the $1,824 swing high to $1,773 low. On the upside, the price might face sellers near the $1,812 level.
The next major resistance is near the $1,825 level. Any more gains might send the price towards the $1,840 resistance level, above which gold price might revisit the $1,850 resistance.
On the downside, an initial support is near the $1,790 level. There is also a major bullish trend line forming with support near $1,785 on the same chart.
The next major support is near the $1,780 level. The main support is near $1,772, below which gold price might struggle to stay above the $1,760 zone.
Looking at USD/JPY, there was a sharp decline below the 135.00 support and it seems like the Japanese yen buyers are aiming more downsides in the near term.
Economic Releases to Watch Today
- Canadian Consumer Price Index for Nov 2022 (MoM) – Forecast +0.4%, versus +0.7% previous.
- Canadian Consumer Price Index for Nov 2022 (YoY) – Forecast +7.4%, versus +6.9% previous.
- US Existing Home Sales for Nov 2022 (MoM) - Forecast 0%, versus -5.9% previous.