The signal to buy gold is still very weak


Current dynamics

Gold prices are relatively stable during today’s morning trading session, consolidating after moderate gains the day before, helped by the depreciation of the US currency and falling yields on US Treasuries.

The focus of investors’ attention is still on the statistics on consumer inflation in the US, published the day before. Tuesday’s data reflected a faster rise in consumer prices, which hit new highs since 2012 and intensified speculation about a possible adjustment in the US Federal Reserve’s monetary policy. Recall that the regulator adheres to a wait-and-see attitude and considers the rise in inflation to be a temporary phenomenon, due to the surge in economic activity in the country as it recovers from the coronavirus pandemic.

Today, bidders are awaiting a speech by the head of the department, Jerome Powell, as well as the publication of a monthly economic review from the American regulator, the so-called “Beige Book”.

Support and resistance levels

Bollinger bands on the daily chart are showing insignificant growth. The price range broadens sluggishly from the top, remaining spacious enough for the current level of market activity. The MACD indicator is growing, maintaining a weak buy signal (the histogram is above the signal line). The Stochastic, reacting to the emergence of upward dynamics the day before, turned into a horizontal plane, indicating an approximate balance of power in the ultra-short term.

To open new trading positions, you should wait until the signals from technical indicators are clarified.

  • Resistance levels: 1749.16, 1758.48, 1769.59, 1785.00
  • Support levels: 1720.00, 1703.07, 1687.15, 1675.00

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Libertex [CPS] WW

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