FXOpen
Gold extended the record-break losing streak on Wednesday, dragging the price of yellow metal to less than even $1100 an ounce. The technical bias has already turned bearish due to a Lower High and Lower Low in the recent wave.
Technical Analysis
As of this writing, the precious metal is being traded around $1092 an ounce. A support may be noted around $1050, the psychological number ahead of $1042, the low of year 2009 and then $1000, another huge phonological level.
On the upside, the precious metal is expected to face a hurdle near $1109, the intraday high of yesterday ahead of $1159, a major horizontal support turned resistance and then $1200, the psychological level. The technical bias will remain bearish as long as the $1204 resistance area is intact.
RBA Inflation Forecast
The Reserve Bank of Australia (RBA) trimmed the Consumer Price Index (CPI)-a main gauge for inflation- forecast to 0.6% on Wednesday against the expectations of 0.5% vs the previous reading of 0.7%. The development might be seen as bullish for the Australian Dollar and consequently spurring short-term bullish momentum in the price of Gold because gold is positively correlated to the Australian currency.
Trade Idea
Considering the overall technical and fundamental outlook, buying the yellow metal around current levels appears to be a good strategy in short to medium term. The trade should however be stopped out on a daily closing below the $1050 support area as described above.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Latest from Forex Analysis
Latest articles
Trend Reversals and the Sushi Roll Reversal Pattern
Understanding trend reversals is essential for optimising trading and managing risks. This article delves into the concept of trend reversals, with a focus on the Sushi Roll reversal pattern—a sophisticated tool that helps traders anticipate significant market shifts—exploring
Rivian Stock Goes High as Q1 Report Anticipation Mounts
Being a newcomer within a very long-established and somewhat traditional global industry is not easy.
The automotive industry is a case in point. It has been over 139 years since Karl Benz managed to successfully produce the first motorised vehicle,
The US Labour Market Is Slowing Down. How Could This Impact Major Currency Pair Pricing?
A weak employment report in the US contributed to a sharp pullback in major currency pairs, but it hasn't led to a full change in major trends yet. For instance, nonfarm payroll figures showed that:
- The number of new jobs