Gold Recovers to Trade Above $1,660 – Quick Technical Outlook

On Friday, the precious metal gold is trading slightly bullish near the $1,668 level after falling previously as a result of the week’s main event, the US Consumer Price Index. The yellow metal GOLD has dropped to $1,645 after reaching a high of $1,682.49. The 28th of September saw a low of $1,614.

The US dollar, as measured by the DXY index, has risen to 113.888 from a low of 112.69. US yields have also risen, with the 10-year Treasury yield reaching 4.09%. Stronger-than-expected US inflation figures for both the core and headline measures are not viewed favorably by the Federal Reserve or the US economy.

Short-term interest-rate speculators in the United States believe the Fed will raise interest rates by 100 basis points in November, up from zero before the CPI report. As a result of the higher-than-expected inflation report, US Dow futures fell more than 350 points.

Meanwhile, further statistics from the United States will be released later today, including US Retail Sales. Spending was most likely bolstered by a rise in auto sales and the first increase in gasoline station sales in three months. Importantly, control group sales are expected to have remained modest, while restaurant sales are likely to have slowed to a crawl after a 1.1% increase in August.

Gold Technical Outlook

After yesterday’s volatile trading, the gold price settles around $1,670, with stochastic losing its positive momentum and the EMA 50 continuing to pound negatively on the price. As a result of these factors, we continue to suggest a bearish trend for the upcoming period.

The price needs to break $1,670 to strengthen the chances of rallying towards our extended target of $1,630. The continuation of the bearish wave is dependent on price stability below 1686.40.

Today’s trading range is likely to be between $1,640 support and $1,680 resistance.

Today’s projected trend: Bearish under $1,680.