Gold still gets the benefit of the doubt
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold continues to hold $1,850 ahead of Friday`s CPI print, which is shaping up to be a catalyst for a market move. Looking at the 2-hour chart below, gold shows a coil in progress which seems poised to break, with the inflation data looming. Notice how the top trendline coincides with the $1,880 - 85 resistance area discussed in prior weeks.
Gold has found support at it’s 200-day moving average (blue) on the daily timeframe, but has resistance overhead at its 50-day moving average (pink), shown below. Notice how the 50-day moving average also corresponds to the $1880 - 85 resistance level.
A move to $1,885 would not surprise, especially if the CPI data comes in weaker than expected. A breach and close above $1,885 this week, (although unlikely on the first try given the confluence of resistance discussed above), would be extremely bullish moving forward.