GOLD Analysis – Gold at Risk Ahead of US CPI Data


Gold traded flat at the start of the week yesterday, but remained hovering at its all-time high.

The continued depreciation of the US dollar over the past week has pushed the price to a new high of around $2,195.

This is the latest record high that was successfully recorded after surpassing the level in December last year.

The market is now focusing on the United States (US) inflation data that will be published in the New York session later tonight which is expected to also affect gold.

Examining the XAU/USD chart which measures the value of gold against the US dollar, the price is seen to be flat around the 2180.00 level throughout yesterday's trading.

This is slightly lower than the high reached at 2195.00 at the close of last week's trade.

The slow movement of the gold price continued today (Tuesday) and started to touch the support line of the Moving Average 50 (MA50) on the 1-hour time frame of the XAU/USD chart.

If the price manages to bounce up, new highs are likely to be recorded again.

Analysts put the target level of gold at the height of 2200.00.

But if there are signs of danger for gold, investors need to prepare for another price plunge.

The closest decline is seen towards the 2144.00 level which was the focus of the previous week's trade.