Gold might hit a strong weekly support in the U.S. session
(Kitco News) - So far this week the gold price has fallen 3.27% to trade at $1821/oz. There has been a push higher in the U.S. fixed-income yields across the curve but more specifically in the front end. The Fed members have been talking about rate rises but one of the main reactions came after the CPI data where the number printed higher than consensus estimates. There were some comments from Fed Chair Powell last night who said that the Fed is firmly committed to getting inflation back down to 2%. He then said that the Fed has the tools to get inflation under control, and they will use them. Money markets are torn between a 50 and 75 bps hike at the next meeting.
Looking closer at the technicals on a weekly chart, The price has fallen since the market tried to retest the all-time high after the Russia/Ukraine conflict kicked off. Gold has now moved towards the high volume node (HVN) of the volume profile at $1796/oz. This means that the $1800/oz psychological level is very important moving forward. This does not mean it cannot break. These HVN levels act as a magnet for the price. Beyond that, the main consolidation low stands at the purple line ($1673/oz). The price is pretty far from that level at the moment but if the yellow metal moves consistently below the HVN there could be a chance it could be tested.
On the upside, the levels are not in focus at the moment but the next resistance is at $1872/oz. That is a wave high from a consolidation zone on a lower timeframe. So if the price finds some support that could be the level to watch on the upside. For now, the bears are in charge and this afternoon when the U.S. traders join in the blue zone should be kept an eye on.