Gold (XAU/USD) Technical Outlook: Neutral
- Gold prices threaten key technical levels below $1,850
- USD lacks direction after US CPI exceeds expectations
- Increased risk appetite allows Gold to remain resilient against riskier assets
Gold prices have recently remained under pressure as inflationary pressures and the probability of higher rates weigh on risk sentiment.
After a four-decade high inflationary print, Gold and other safe-haven assets retraced a portion of their recent gains as investors strive to find balance in a risk-orientated environment.
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Gold (XAU/USD) Technical Analysis
After two consecutive weeks of gains, Gold prices have bulls ran into a wall of resistance above the 38.2% Fibonacci retracement level of the 2020 – 2021 move at $1,8930.
As buyers and sellers battle it out, the development of a potential spinning top candle on the weekly time-frame is indicative of indecision as prices track the 10-period moving average (MA).
Gold (XAU/USD) Weekly Chart
Chart prepared by Tammy Da Costa using TradingView
Gold (XAU/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
For now, a break above $1,860 gives way for the $1,876 mark (50% retracement of the above-mentioned move) and towards the $1,900 mark.
--- Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707
