GOLD: Navigating the USD Rebound and Eyeing Inflation Data

GOLD: Navigating the USD Rebound and Eyeing Inflation Data

Gold price exhibits resilience, maintaining a positive stance despite the recent rebound of the US Dollar (USD) in the early Asian session on Monday. The robust US labor data released on Friday fueled demand for the Greenback, yet gold manages to hold its ground. As the metal trades at $2,045, marking a 0.06% gain for the day, all eyes are now on the forthcoming inflation data set to unfold this week.

Technical Analysis and Bullish Signals:

Examining the technical landscape, gold remains within a bullish channel. The interplay of factors, including a rebound on the dynamic trendline, an oversold Relative Strength Index (RSI) condition, and the strategic positioning around the 50% and 61.8% Fibonacci area, creates a conducive environment for a potential upward push in the price. This setup aligns with a swing mode strategy, hinting at the prospect of establishing new higher highs.

Key Focus: US Inflation Data:

While the stronger-than-expected US labor data has provided a boost to the Greenback, market participants are eagerly awaiting this week's crucial inflation data. The headline Consumer Price Index (CPI) for December is anticipated to reveal a 3.2% year-on-year increase. Simultaneously, the Core CPI is expected to moderate to 3.8% year-on-year from the previous reading of 4.0%. The outcome of this data could hold the key to the next moves in both the USD and gold markets.

Our preference

Long positions above 50% and 61.8% Fibo Area with targets at 2068.00 & 2090.56 in extension.

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09/01/2024