Key Highlights
- Gold price started a fresh increase from the $1,920 support.
- A key bullish trend line is forming with support near $1,940 on the 4-hours chart.
- EUR/USD is still below 1.0950, and GBP/USD is consolidating near 1.3000.
- The US CPI increased 8.5% in March 2022 (YoY), up from +7.9%.
Gold Price Technical Analysis
Gold price formed a base above the $1,900 level against the US Dollar. The price settled above the $1,920 level to start a fresh increase.
The 4-hours chart of XAU/USD indicates that the price was able to clear a couple of key hurdles near the $1,950 level. There was a proper close above the $1,950 level, the 100 simple moving average (red, 4-hours), and the 200 simple moving average (green, 4-hours).
The price climbed above the 76.4% Fib retracement level of the main decline from the $1,966 swing high to $1,890 low. It even broke the $1,966 swing high.
On the upside, the price might face resistance near $1,984. It is near the 1.236 Fib extension level of the main decline from the $1,966 swing high to $1,890 low. The next key resistance could be $1,992, above which the bulls might aim a move above $2,000.
If there is a downside correction, the price might find support near $1,950. The next major support is near the $1,940 level. There is also a key bullish trend line forming with support near $1,940 on the same chart.
Fundamentally, the US Consumer Price Index for March 2022 was released by the US Bureau of Labor Statistics. The market was looking for an increase of 8.4% in March 2022, compared with the same month a year ago.
The result was in line with the forecast, as the US CPI increased 8.5%, up from 7.9%. Besides, the US Core CPI increased 6.5%, whereas the market was looking for 6.6%.
Looking at EUR/USD, the pair is consolidating losses below the 1.0950 pivot level. Besides, GBP/USD is fighting hard to stay above the 1.3000 level.
Economic Releases to Watch Today
- UK Consumer Price Index for March 2022 (YoY) – Forecast +6.7%, versus +6.2% previous.
- UK Core Consumer Price Index for March 2022 (YoY) – Forecast +5.4%, versus +5.2% previous.
- BoC Interest Rate Decision – Forecast 1%, versus 0.5% previous.
