- XAU/USD remains bullish despite the current retreat.
- Staying near the 1,993 may announce an imminent breakout.
- A new lower low activates a deeper drop.
Gold price dropped a bit today, dropping from its highest point of 1,994 to 1,988. After a recent increase, it was kind of expected. But don’t count gold out just yet – the pressure for it to go up is still strong because the US dollar is not doing so well.
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Today, what’s happening worldwide could change gold’s price. A report on the Canadian Consumer Price Index is coming up, and it might show a 0.1% increase, which is better than the 0.1% drop in the last report. They’re also releasing data on Core CPI, Common CPI, Trimmed CPI, and Median CPI.
But the big deal is the FOMC Meeting Minutes. This could shake things up. The US dollar underwent some changes after the US inflation numbers came out. If the meeting minutes sound tough, it could strengthen the US dollar and make gold prices drop. But if the report is more laid-back, gold prices might go up again.
Tomorrow, more stuff could move gold’s price – like the US Unemployment Claim, Revised UoM Consumer Sentiment, Durable Goods Orders, and Core Durable Goods Orders. Keep an eye out for those!
Gold price technical analysis: Selling territory
Looking at the hourly chart, the rate hit a high of 1,993 but couldn’t quite stay there, showing some false breakouts. Now, it’s heading down. It’s trying to challenge the upper median line (uml). When it couldn’t reach and test the 150% Fibonacci line, it hinted that the buyers might be getting tired.
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To really see more drops, it has to settle below that upper median line (uml) and make a new lower low. If it hangs around 1,993, we might be on the brink of a breakout and things might keep going in the same direction. If it can break out of the supply zone, that’s a good sign for more growth. The R1 (2,005) is like a target that could be reached if things keep going up.
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