Gold Edges Higher Ahead of the U.S. Inflation Report: Can the Yellow Metal Shine?
MarketPulse | Jul 12, 2023 01:15AM ET
Gold appears to have found some support again in recent days after rebounding twice at around $1,900.
The US jobs report was one possible risk event that could have triggered a big move in gold, one way or another, and the other is due tomorrow in the shape of the US inflation report.
It seems gold bulls are feeling a little more confident, although $1,940 still poses a test, having been a notable area of support in late May and the first half of June.
Gold
We could just be seeing a corrective move after such a strong pullback from the highs in May, although a strong inflation number again tomorrow could send it lower once more.
If we do see a move above $1,940, the next levels that stand out are $1,960 and $1,980 which coincide with the 38.2% and 50% Fibonacci retracement levels, respectively.
If this is just a corrective move as part of a deeper decline, these may be viewed as possible rotation zones, especially falling around the 55/89-day simple moving average band.
Further above, the 61.8 fib level falls at $2,000 which is a major psychological barrier and as we’ve seen previously, a notable level of support and resistance.
Of course, gold hasn’t traded around here too much in its history but we can see that between March and May, the price was responsive to the level.
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