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

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 – 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.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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