GOLD → False Breakdown and Range Formation for the New Week
Gold closes lower to 2016.79 on Friday amid NFP data, losing 1.63% from the opening, but the asset is strengthening 1.35% for the week
On the weekly timeframe, gold looks good for the medium term. A slow and consolidating approach to resistance that could form a pre-break consolidation for price to move out of the range after breaking the upper boundary.
On the daily timeframe the price makes a false break of the resistance 2048.770 and descends towards the support, forming a sideways range. A strong support zone, formed back in April 2022 - 1981.566, acts as the lower boundary. Most likely, from the session opening the price can form a pullback to 2025 and continue falling to the support, but if gold breaks through 2025, it is possible that growth will continue without the support retest, as bulls can actively defend it, (there was already a retest to 2000 on Friday).
For the week we are expecting news such as: Core CPI (preliminary data), CPI, PPI which may affect pricing. There are no global changes in the fundamentals, except that PPI might show us a bullish momentum, but we all remember what happened on Friday, when all analysts were expecting negative data, but were very surprised by the bullish reading for the dollar, which ruined the bullish setup for gold.
Regards to R. Linda!
On the weekly timeframe, gold looks good for the medium term. A slow and consolidating approach to resistance that could form a pre-break consolidation for price to move out of the range after breaking the upper boundary.
On the daily timeframe the price makes a false break of the resistance 2048.770 and descends towards the support, forming a sideways range. A strong support zone, formed back in April 2022 - 1981.566, acts as the lower boundary. Most likely, from the session opening the price can form a pullback to 2025 and continue falling to the support, but if gold breaks through 2025, it is possible that growth will continue without the support retest, as bulls can actively defend it, (there was already a retest to 2000 on Friday).
For the week we are expecting news such as: Core CPI (preliminary data), CPI, PPI which may affect pricing. There are no global changes in the fundamentals, except that PPI might show us a bullish momentum, but we all remember what happened on Friday, when all analysts were expecting negative data, but were very surprised by the bullish reading for the dollar, which ruined the bullish setup for gold.
Regards to R. Linda!
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