Gold Price Analysis: Bears Protect Key Resistance, $ 1,900
Gold prices moved back above $ 1,900 / oz at the start of the trading session, but failed to keep those levels into a stronger USD.
The price of gold on Tuesday edged down as XAU / USD collapsed about 0.3% at the close of Wall Street after falling from a high of $ 1,903.93 to a low of 1,883 , $ 78.
Investors are treading water ahead of an influx of expected market events, from central banks to US inflation data, over the next few days.
Further increases in inflation could raise concerns that the Fed is starting to consider tighter monetary conditions, with reduced bond purchases likely the first step.
In the market lull, forex volatility hit its lowest level in a year and the US dollar was all but sidelined as markets braced for Super Thursday with the European Central Bank and the US consumer price index.
Traders sent long-term US Treasury yields to their lowest in more than a month on Tuesday after a report showed small business owners were less confident and narrowed the spread by a party tightly. monitored from the yield curve.
The mood for risk is also lackluster, supporting the greenback. The S&P 500, for example, has shown little evidence of a convincing rally and breakthrough to new highs since it fell sharply in the middle of last month when precious metal prices also saw a pullback and that the greenback rallied more than 1% in the DXY.
Meanwhile, weaker than expected non-farm employment figures on Friday, which allayed concerns about an anticipated reduction in the Federal Reserve’s monetary stimulus, are expected to keep the US dollar capped in the Fed, which should keep the price of gold near recent highs in the 1900s.
Gold technical analysis
Technically, the price is testing, while the 4-hour support is expected to hold in the US CPI data on Thursday above the daily bullish 10 and 20 EMAs.
However, if the M formation on the daily chart holds at the neckline level, with the price stuck below the neckline resistance of 1900, a case of daily dynamic support wrestest will be on the charts. .