Key Highlights
- Gold price found support near the $1,320 level and recovered recently against the US Dollar.
- There are two bullish trend lines forming with support near $1,328 on the 4-hours chart of XAU/USD.
- The US PPI in March 2018 posted a rise of 3% (YoY), more than the forecast of 2.9%.
- Today, the US CPI report for March 2018 will be released, which is forecasted to increase by 2.4% (YoY).
Gold Price Technical Analysis
After a major decline, gold price found support near the $1,320 level against the US Dollar. The price traded higher and moved above the $1,330 resistance zone.
There was also a break above the 50% Fib retracement level of the last decline from the $1,348 high to $1,319 low. More importantly, the price settled above the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour).
On the downside, there is are two bullish trend lines forming with support near $1,328 on the 4-hours chart of XAU/USD. The trend line support is near the 200 SMA, which means the $1,328 level is a crucial area for buyers.
As long as the price is above the $1,328 support, it may continue to move higher. On the upside, there is a connecting bearish trend line with resistance at $1,341 on the same chart. A break above $1,341 could clear the path for more gains towards $1,350 in the near term.
Recently, the US PPI report for March 2018 was released by the Bureau of Labor statistics, Department of Labor. The market was looking for a 2.9% rise compared with the same month a year ago.
The actual result was positive as the PPI increased 3% in March 2018. In terms of the monthly change, there was a rise of 0.3%.
Overall, it seems like there could be ranging moves in gold price ahead of today’s US CPI and FOMC meeting minutes release.
Economic Releases to Watch Today
- UK Industrial Production for Feb 2018 (MoM) – Forecast +0.4%, versus +1.3% previous.
- UK Manufacturing Production for Feb 2018 (MoM) – Forecast +0.2%, versus +0.1% previous.
- UK Goods Trade Balance for Feb 2018 – Forecast £-11.950B, versus £-12.325B previous.
- US Consumer Price Index March 2018 (MoM) – Forecast 0%, versus +0.2% previous.
- US Consumer Price Index March 2018 (YoY) – Forecast +2.4%, versus +2.2% previous.
- US Consumer Price Index Ex Food & Energy March 2018 (YoY) – Forecast +2.1%, versus +1.8% previous.
- FOMC Meeting Minutes.
