- Gold price is struggling to clear the $1,980 resistance.
- A key contracting triangle is forming with resistance near $1,970 on the 4-hour chart.
- GBP/USD extended gains and EUR/USD recovered above 1.0800.
- The US CPI came in at 4% in May 2023, down from 4.9%.
Gold Price Technical Analysis
Gold price remained in a bearish zone below the $2,000 level against the US Dollar. The price traded below the $1,980 support to move into a short-term bearish zone.
The 4-hour chart of XAU/USD indicates that the price settled below the $1,980 support, the 200 Simple Moving Average (green, 4 hours), and the 100 Simple Moving Average (red, 4 hours).
Recently, it found support above $1,940 and started trading in a range. It climbed above the $1,965 level but the bulls are seen struggling near the $1,970 and $1,980 levels. There is also a key contracting triangle forming with resistance near $1,970 on the same chart.
The next major resistance is near the $1,985 level and the 200 Simple Moving Average (green, 4 hours). Any more gains might send the price toward the $2,000 resistance level.
Initial support is near the $1,940 level. The next major support is near $1,932. If the bulls fail to protect the $1,932 support, there is a risk of a major decline. In the stated case, the price could decline toward the $1,910 level.
Looking at EUR/USD, the pair started a recovery wave and was able to climb above the 1.0800 resistance zone.
Economic Releases to Watch Today
- UK Industrial Production for April 2023 (MoM) - Forecast -0.1%, versus +0.7% previous.
- UK Manufacturing Production for April 2023 (MoM) - Forecast -0.2%, versus +0.7% previous.
- US Producer Price Index for May 2023 (YoY) – Forecast +1.5%, versus +2.3% previous.