Gold Edges Down Ahead of US Inflation – What to Expect? - Forex News by FX Leaders

Gold Edges Down Ahead of US Inflation – What to Expect?

Posted Wednesday, February 13, 2019 by
Arslan Butt • 1 min read

Gold prices edged higher on Tuesday to test a strong trading level of $1,314 and managed to form a double top setup. Recalling FX Leaders Feb 13 – Economic Events Brief, the Bureau of Labor Statistics will be releasing the consumer price index data at 12:30 (GMT). The US CPI is expected to gain by 0.1% vs. -0.1% in January. Whereas, the Core CPI m/m is expected to remain steady at 0.2%.

As you know, there’s a negative correlation between gold and the Greenback. Therefore, better than expected inflation is likely to drive bearish waves in gold. Perhaps, that’s the reason why we are seeing fewer fluctuations in gold.

The technical side hasn’t changed much. On the 4-hour chart, gold is still facing strong resistance at $1,314. Below this, the yellow metal is highly likely to stay bearish until $1,307 and 1,302. Whereas, the bullish breakout of $1,314 can lead to gold prices towards $1,326 later this week.

Support Resistance
1305.06 1321.37
1295.8 1328.43
1279.48 1344.74
Key Trading Level: 1312.11

Gold – XAU/USD – Trading Plan

The idea is to stay bearish below $1,313.50 with a stop below $1,316 to target $1,310. Whereas, I will be looking for a buy position above $1,314 today.

Good luck!

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

Leave a Reply

Notify of