Gold levels heading into US CPI, FOMC
Updated
Gold managed to rose for a second day after Friday's strong NFP selloff, but bulls clearly lack conviction looking at the small bullish candles on the daily chart. This has allowed a retracement channel to form on the 1-hour chart, which suggests momentum could eventually turn lower.
With US CPI potentially coming in hot and the Fed pushing back on cuts, it could be a game of two halves which could send gold initially higher before rolling over. The weekly pivot point around 2322 and high-volume node / upper 1-day implied volatility band around 2332 make likely targets for bulls, or areas for bears to consider fading into.
Of course, be on guard for explosive volatility around these events, as volatility can cut both ways.
With US CPI potentially coming in hot and the Fed pushing back on cuts, it could be a game of two halves which could send gold initially higher before rolling over. The weekly pivot point around 2322 and high-volume node / upper 1-day implied volatility band around 2332 make likely targets for bulls, or areas for bears to consider fading into.
Of course, be on guard for explosive volatility around these events, as volatility can cut both ways.
Trade closed: target reached
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