Key Highlights
- Gold price rallied towards $1,915 before the bears appeared.
- A connecting bullish trend line is forming with support near $1,895 on the 4-hours chart.
- EUR/USD and GBP/USD might continue to recover higher.
- The US CPI declined from 6.4% to 6% in Feb 2023.
Gold Price Technical Analysis
Gold price started a major increase above the $1,850 resistance against the US Dollar. The price gained momentum after there was a close above the $1,880 level.
The 4-hours chart of XAU/USD indicates that the price even settled above the $1,880 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
Finally, there was a spike above the $1,900 resistance. The price traded as high as $1,914 before a consolidation phase kicked in. On the downside, an initial support is near the $1,895 level.
There is also a connecting bullish trend line forming with support near $1,895 on the same chart. The next major support is near the $1,882 level, below which there is a risk of a move towards the $1,875 level.
The next major support is near the $1,865 level, below which gold price might struggle to stay above the $1,850 zone. In the stated case, gold price could slide towards the $1,832 support.
On the upside, the price is facing resistance near the $1,915 level. The main resistance is near the $1,920 zone and the, above which the price might rise towards the $1,950 level.
Looking at EUR/USD, the pair might soon attempt an upside break and it could even clear the 1.0800 resistance zone.
Economic Releases to Watch Today
- US Retail Sales for Feb 2023 (MoM) – Forecast -0.3%, versus +3.0% previous.
- US Producer Price Index for Feb 2023 (MoM) – Forecast +0.3%, versus +0.7% previous.
- US Producer Price Index for Feb 2023 (YoY) – Forecast +5.4%, versus +6.0% previous.
