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