Refer a friend

The US CPI data beat forecasts showing the inflation rate is continuing to rise. This caused the price of Gold to trade lower. Will this continue and what are the key levels to look out for?

Watch the video to learn more…

Gold Analysis

The price of Gold traded lower from the recent US CPI data which saw the USD strengthen once again. In recent history the price of Gold has fallen due to the potential for the Federal Reserve to hike rates more aggressively to fight the climbing inflation rate. If however the Federal Reserve is going to hike rates for longer this could see the long term trend for Gold be lower. 

Going on to the chart we can see that the price has formed a downward trend on the weekly time frame after trading out of the monthly range. If the price is going to continue this downward trend we could assume more lower lows and lower highs will form and the price is now in a bearish impulsive phase.

GOLD

 The price has formed a consolidation on the 4hr time frame between the $1680.00 and $1661.00 level. This has now been broken to the downside with successive closes below. This is a sign that selling pressure will resume. If the price was to retest this consolidation zone and reject, we could assume that sellers will drive the price back to the key lows of $1620.00. A break below these lows will open significant opportunities to see lower prices.

Did you see our EURUSD Analysis? You can see it here.

Enjoy low spreads and quick trade executions with a live account. Our highly committed customer support team will assist you from your quick account setup to any future concerns. Start trading with Blueberry Markets today.

Join us on Telegram
and get real-time
alerts on
Forex,
Indices, Gold, Crypto
and Share CFDs

Join now for free
telegram cta
bbjam graphic

Sign up to
Blueberry Jam

Back up your trade positions with insights
and how-to-guides, straight to your
inbox every week

Thank you. You have successfully subscribed to Blueberry Jam!