Gold clears six-week-old hurdle ahead of US inflation data
Gold extends a fortnight-long recovery to stay comfortably beyond the 200-SMA and a horizontal area from early January. The run-up joins bullish MACD signals to suggest further upside but the overbought RSI line pushes buyers to remain cautious until witnessing sustained trading above $1,830. In addition to the key hurdle, gold traders should also keep their eyes on the US Consumer Price Index (CPI) data for January amid Fed’s rate hike concerns.
In case of firmer inflation, the US dollar may consolidate the latest losses and weigh on the gold prices, indicating a pullback towards the 200-SMA near $1,815. Following that, the $1,800 threshold and the 61.8% Fibonacci retracement (Fibo.) of December-January upside, near $1,790 may entertain gold sellers ahead of directing them to a monthly support area surrounding $1,780.
Alternatively, surprise weakness in the price pressure could help gold buyers to overcome the nearby resistance zone and aim for January’s top around $1,853. Though bulls might struggle around the stated hurdle, if not then November 2021 peak close to $1,877 and the $1,900 round figure should return to the charts.
