Key Highlights
- Gold started a sharp downside correction below the $2,665 support.
- A connecting bearish trend line is forming with resistance at $2,670 on the 4-hour chart.
- Bitcoin traded to a new high at $89,998 on TitanFX before it saw a pullback.
- The US CPI could rise 2.6% in Oct 2024 (YoY), up from 2.4%.
Gold Price Technical Analysis
Gold prices struggled above $2,775 against the US Dollar. The price started a fresh decline and traded below the $2,720 and $2,700 support levels.
The 4-hour chart of XAU/USD indicates that the price declined below the $2,665 support, the 100 Simple Moving Average (red, 4 hours), and the 200 Simple Moving Average (green, 4 hours).
The decline even gained pace below $2,620. Finally, the price tested the $2,590 zone before it started a consolidation phase. On the downside, initial support is near the $2,590. The first major support is near the $2,580 level.
The main support is now $2,550. A downside break below the $2,550 support might call for more downsides. The next major support is near the $2,525 level.
On the upside, immediate resistance is near the $2,635 level or the 23.6% Fib retracement level of the downward move from the $2,790 swing high to the $2,589 low. The first major resistance sits near the $2,665 level.
There is also a connecting bearish trend line forming with resistance at $2,670 on the same chart. A clear move above the $2,670 resistance could open the doors for more upsides. The next major resistance could be $2,700, above which the price could rally toward the $2,720 level.
Looking at Bitcoin, the price gained pace for a move above the $88,500 level before it saw a short-term rejection near $90,000.
Economic Releases to Watch Today
- US Consumer Price Index for Oct 2024 (MoM) – Forecast +0.2%, versus +0.2% previous.
- US Consumer Price Index for Oct 2024 (YoY) – Forecast +2.6%, versus +2.4% previous.
- US Consumer Price Index Ex Food & Energy for Oct 2024 (YoY) – Forecast +3.3%, versus +3.3% previous.
