- The price confirmed its breakout through the downtrend line.
- It seems overpriced after failing to reach Friday’s high.
- Canadian inflation data should move the rate tomorrow.
The price of gold is trading at $2,053 at the time of writing. The precious metal is struggling to stay higher. Buyers lack confidence despite strong rally.
–Are you interested in learning more about forex options trading? Check out our detailed guide-
The US dollar seems determined to extend its rise which could have a negative impact on gold prices. The US dollar’s appreciation against its rivals after the US reported higher inflation in December could push the yellow metal lower.
Fundamentally, the XAU/USD tried to continue its gains as the US PPI reported a 0.1% decline versus the 0.1% increase expected on Friday, while the core PPI rose 0.0%, less compared to an estimated growth of 0.2%.
Today, US manufacturing output, wholesale and the BOC business forecast survey could move the markets. Fundamentals should be decisive tomorrow as Canada is due to release inflation data.
The consumer price index may announce a drop of 0.3% compared to a growth of 0.1% in the previous reporting period. Core, median, abbreviated and composite CPI data will also be released. Furthermore, the US Empire State Manufacturing Index is also a high-impact event.
Gold Price Technical Analysis: Buyer Exhaustion
From a technical point of view, the price of gold found strong support at the static support of $2,015 and has now turned to the upside. It broke above the downtrend line (channel resistance), signaling a potential broader move to the upside.
–Are you interested in learning more about Forex robots? Check out our detailed guide-
The metal confirmed a breakout but looks a little overpriced after again failing to reach Friday’s high of $2,062. The broken trend line and the weekly center point at $2,041 represent key support levels. As long as it remains above these levels, the price could jump higher again despite minor pullbacks.
Do you want to trade Forex now? Invest in eToro!
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing money.
