Gold Choppy Session Continues – Brace for a Breakout Trade

The GOLD price is trying to establish a direction in an otherwise tranquil market. The precious metal is trading below $1,880.00 as investors are expected to avoid taking large positions before releasing the US Consumer Price Index (CPI) data.

The ongoing battle of the US Dollar Index (DXY) to retake the 103.00 resistance reflects the market’s lack of volatility. Also, S&P500 futures are flat, holding on to Tuesday’s gains. US 10-year Treasury rates have fallen below 3.59%.

The USD Index has been battered by market participants following a sharp drop in wage inflation and economic activity that has forced Federal Reserve (Fed) chair Jerome Powell and his colleagues to reconsider their views on terminal rate projections and the pace at which interest rates will be raised in the future.

Investors will have more clarity following Thursday’s inflation data release, which is likely to show additional reductions. A stronger-than-expected US Consumer Price Index (CPI) on Thursday, according to MUFG Bank economists, would prevent the USD Index from falling to new lows.

Gold Technical Outlook

GOLD price succeeded in breaching the bullish flag’s resistance and settling above it, providing a strong motive for us to drive the price to produce new positive trading, with goals ranging from 1900 to 1928.60.

The EMA 50 continues to hold the price from below, ensuring that the bullish trend scenario remains valid and active in future sessions unless the price breaks and holds below 1865.00. Today’s trading range is likely between 1860 support and 1900 resistance.

Today’s projected trend: Bullish

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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