Range Bound Gold Awaits Breakout – U.S. Inflation Report in Play - Forex News by FX Leaders
U.S. Inflation Report Awaited

Range Bound Gold Awaits Breakout – U.S. Inflation Report in Play

Posted Tuesday, June 12, 2018 by
Arslan Butt • 1 min read

The precious metal continues to hold the same trading range of $1,294 – $1,301 as most investors await the U.S. inflation figures and Fed rate decision tomorrow. Furthermore, the encouraging signs from the historic U.S.-North Korea summit are also limiting demand for the yellow metal.
Watch out for the trade plan…

Gold – XAU/USD – Quick Technical View

For the past few days, gold has been stuck in a narrow trading range of $1,294 – $1,301. The technical indicators are signaling indecision among investors. For instance, the 20 and 50 periods moving averages are suggesting buying gold. Whereas, the 100 and 200 moving averages are showing a bearish trend.
The RSI and Stochastics are also confusing. At one moment, these are showing a bullish crossover on 4- hour chart and at another moment, they appear to be bearish.
Alright, so all we know is that the investors need a reason to break out of $1,294 – $1,301. Can you think of any reason today? If CPI comes to your mind then you are right. Gold has a nice chance to break out of range on the release of CPI data. Read more about CPI in FX Leaders June 12 – Economic Event’s Brief.

Gold - 4 Hour Chart

Gold – Key Trading Levels

Support Resistance
1298.88 1305.38
1296.88 1307.38
1293.63 1310.63
Key Trading Level: 1302.13

Gold – XAU/USD – Trade Idea

Today, the idea is to stay bearish below $1,302 to target $1,294 with a stop above $1,304. Whereas, the violation of $1,302 is likely to get us a bullish trend until $1,308. Good luck, and let’s wait for the U.S. Inflation rate data.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of