Gold May Halt After Rally, But $1,918 Is Strong Support

Gold price (Yellow Metal) retreats from a nine-month high as bulls await the key US data/events for further directions while aiming for the fresh multi-month peak surrounding the mid-$1,900s.

In addition to the cautious mood ahead of the key US growth and inflation data, a light calendar and contrasting plays between the Federal Reserve (Fed) and the European Central Bank (ECB) officials also seem to weigh on the Gold price of late. That said, holidays in China and Fed’s blackout join the ECB’s one-week silence period starting from Thursday to restrict immediate yellow metal moves.

  • Yellow Metal buyers struggle around multi-month high, snaps three-day uptrend, but stays comfortable beyond $1,918 support level.
  • Pre-data anxiety joins fading hawkish bias on Fed to probe Gold bulls.
  • Firmer prints of US Q4 GDP, Core PCE could renew bullish bets on FOMC and extend latest pullback.
  • Silver, Copper Rise Amid Tight Supply

It’s worth noting that the likely easing in the scheduled top-tier data keeps the central bank watchers on the edge and probing the Gold price of late even as the US Dollar weakness underpins the metal’s upside momentum. Moving on, the macroeconomic numbers will be crucial for the XAU/USD traders as downbeat prints probe the Fed’s rate hike and can allow the quote to refresh the multi-day high. However, dovish expectations are on the table and hence any positive surprise from the data won’t hesitate to trigger the much-awaited pullback in the precious metal price.

Gold Technical Analysis: Keep Eye on Key levels

The Technical Analysis shows that the Gold price grinds higher past the $1,920 support confluence including the previous lows on one-day and one-week.

Also putting floor under the Gold price could be the convergence of Fibonacci 38.2% on one-week, 200-Hourly Moving Average (HMA) and the 10-DMA, close to $1,917.

It’s worth noting that Fibonacci 38.2% on one-day and previous weekly top offers immediate support to the Gold price near $1,932. Additionally, a joint of the 5-DMA and 10-SMA on four-hour could test the yellow metal bears around $1,923.

Meanwhile, previous daily high and four-hour peak probes Gold buyers near $1,955.

However, major attention is given to the $1,966 area comprising Pivot Point one-wee R2 and tops marked during late March 2022.

Should the Gold buyers keep the reins past $1,966, the odds of witnessing the $2,000 on the chart can’t be ruled out.

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