Gold Turned Bullish On Weaker Dollar – US Inflation Awaited Today
Arslan Butt • 1 min read
Thanks to safe-haven demand and the weaker dollar, our forex trading signal on Gold hit another take profit for 45 green pips. Today, the trend of Gold is mainly depending upon the release of US inflation data which is due to release at 13:30 (GMT).
Gold/ XAUUSD – Technical Outlook
Friends, the precious metal Gold has completed the Bearish Gartley pattern at $1,336 on the hourly timeframe. Typically, this particular pattern signifies a selling bias of traders and usually drives bears in the market.
The RSI and Stochastics, both have started coming out of the overbought zone. That means, we can expect a retracement in Gold.
Gold – Hourly Chart – Bearish Gartley
But, the investors will be feeling shy to enter the market before big news today. Yup, I’m talking about the US CPI which is expected to grow at the rate of 0.3% vs. 0.1% in the past. The positive correlation between US dollar and bullion market can place a bearish check on Gold today.
For now, the Gold is holding below a resistance level of $1,337 and it’s likely to retrace back until momentum until $1,329/30. Whereas, on the bullish breakout, Gold can soar to $1,340 and $1,346.
Gold / XAUUSD – Trade Idea
The idea is to stay bearish below $1,335 with a stop above $1,337 and take profit at $1,332/31 before CPI figures today. Good luck!