Investors look carefully before CPI
Updated
Gold fell out of favor after rebounding slightly after Friday's NFP. This morning, the price briefly fell below $2,020, hitting its lowest level since December 18th. As a result, the precious metal remains in its previous range and is unlikely to gain popularity due to the recent rally in the dollar. But in the absence of a key US index until Thursday's release of the US Consumer Price Index (CPI), the dollar is likely to come under pressure again as it hits new lows. Key resistance levels for several major currency pairs. The US 10-year bond yield has also reached a key resistance zone, which could mean lower future yields and therefore a lower opportunity cost of holding gold compared to bonds. . But with the Fed and other central banks cutting interest rates several times this year, I have no doubts about the long-term bullish outlook for gold, whatever that may be. What can be done in the short term?
Gold is trying to find support from around $2030 after briefly falling below this support level earlier in the day. Since the needle was unable to hold Friday's small gains, the shorter duration of the bullish trade here will want to find evidence and strengthen the clear signal to determine that the needle has reached a low. Before that while looking for ways to start buying.
below the $2030 support level, which tracks the next key level at around $2000, a psychologically important level of support, followed by around $1950, roughly corresponding to the rising 200-day average, and that previous support level. The slope of the 200-day MA observationally indicates that the long-term trend is indeed bullish for gold.
On the upside, the next target is around $2075, resistance from August 2020, which will remain a key area for gold. This metal cannot close shop in this sequence. If and when that happens, the December 2023 high of $2,146 will become the next focus.
Gold is trying to find support from around $2030 after briefly falling below this support level earlier in the day. Since the needle was unable to hold Friday's small gains, the shorter duration of the bullish trade here will want to find evidence and strengthen the clear signal to determine that the needle has reached a low. Before that while looking for ways to start buying.
below the $2030 support level, which tracks the next key level at around $2000, a psychologically important level of support, followed by around $1950, roughly corresponding to the rising 200-day average, and that previous support level. The slope of the 200-day MA observationally indicates that the long-term trend is indeed bullish for gold.
On the upside, the next target is around $2075, resistance from August 2020, which will remain a key area for gold. This metal cannot close shop in this sequence. If and when that happens, the December 2023 high of $2,146 will become the next focus.
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