Consumer Price Index (CPI) data out of the US increased seeing the price of Gold fall. Will this continue towards the key $1800.00 level?
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Forex Chart Of The Day: GOLD To Continue Lower
The price of GOLD fell today after the Consumer Price Index (CPI) in the US rose month on month from -0.1% to 0.5%. This combined with the recent rise in the employment rate could put some pressure on the price of Gold. In 2022 the Fed began to increase interest rates which saw the USD strengthen and Gold fall. We could begin to see a similar pattern form again as the Fed may have to come back with aggressive rate rises to bring employment and inflation down.
The price on the chart has traded through multiple technical levels and some observations included:
- Price fell from the key level of $1955.00.
- Price recently traded through a bearish flag pattern.
- The CPI data caused the price to rally into resistance highs before turning lower.
- If the same happens again we could expect sellers to remain at key highs.
- Targets for sellers will be the $1830.00 January lows or the key $1800.00 level.
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