Nov. 15: Range-bound Gold & the U.S. Inflation Figures Today

Posted Wednesday, November 15, 2017 by
Arslan Butt • 1 min read

Good Morning, traders. I’m back from my vacation and excited to milk the endless opportunities waiting in the market. The Gold market hasn't been very volatile in my absence as it's stuck in a range of $1,265 – $1,285. On the other hand, the fundamentals have the potential to cause some serious fluctuations in the market today.


Quick Review of Fundamentals

Today at 13:30, the Bureau of Labor Statistics is expected to release the inflation figures. For all the newbies out there, the consumer prices account for the majority of the overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates to control the supply of money.

The negative relationship between Gold and the U.S. dollar will drive the Gold prices today, especially after the release of CPI and Core CPI data from the United States.


Gold // XAUUSD  – Technical View

On the 3- hour chart, the precious metal is showing no trend. Let's break down the key technical points:

Gold - 4 Hours Chart - Sideways Range Gold – 4-Hour Chart – Sideways Range 
  • The 50- periods EMA is providing support to Gold at $1,277 but the recent historical trend shows no care for EMA. The Gold prices are trading above and below EMA perfectly. 
  • The stochastics is trading in the overbought zone and the market can retrace up to $1,277 below $1,283 today.


Gold // XAUUSD – Trading Plan

The Gold market is likely to exhibit thin volatility before the release of the U.S. Inflation figures. The market movement will depend on the direction of the news. Until then, investors are advised to stay bullish above $1,277. Good luck traders and keep following for more updates.

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