Before the CPI data:
Today’s market moved almost exactly as outlined in the morning analysis:
It tested support lower and lower, one level at a time!
Gold is currently hovering around 4140, and the September CPI data will be released in about 30 minutes.
Whether the figure comes in high or low reflects the level of inflation. Inflation affects expectations for interest rate hikes, and those expectations are reflected in movements in the U.S. dollar, Treasury yields, and gold.
Looking only at gold’s candlestick structure, there is support all the way below its current price, from 4133 down to 4080.
But resistance overhead is just as clear, especially around 4180.
So there may not be a strong one-way move tonight;
a choppy market may be more likely.
The ideal scenario would be a brief downward spike followed by a rebound.
If it spikes upward instead, the next few days may call for a mainly short bias.
Data releases can bring sharp volatility. Avoid trading during the data release; waiting for confirmation is preferable!$XAU
Today’s market moved almost exactly as outlined in the morning analysis:
It tested support lower and lower, one level at a time!
Gold is currently hovering around 4140, and the September CPI data will be released in about 30 minutes.
Whether the figure comes in high or low reflects the level of inflation. Inflation affects expectations for interest rate hikes, and those expectations are reflected in movements in the U.S. dollar, Treasury yields, and gold.
Looking only at gold’s candlestick structure, there is support all the way below its current price, from 4133 down to 4080.
But resistance overhead is just as clear, especially around 4180.
So there may not be a strong one-way move tonight;
a choppy market may be more likely.
The ideal scenario would be a brief downward spike followed by a rebound.
If it spikes upward instead, the next few days may call for a mainly short bias.
Data releases can bring sharp volatility. Avoid trading during the data release; waiting for confirmation is preferable!$XAU