The price of gold extended upside movement on Wednesday, increasing the value of precious metal to more than $1165 an ounce following the release of some key economic data. The technical bias remains bullish because of a Higher High and Higher Low in the recent wave on daily chart.
Gold ended the day around $1,165.50 a troy ounce yesterday, and the daily chart shows that it traded within Monday’s range, having met short intraday buying interest on a dip down to its daily 200 SMA. Technically, the same chart shows that the price continued hovering around a bullish 20 SMA, whilst the technical indicators are aiming to bounce from their mid-lines, limiting the downside at the time being.
In the 4 hours chart, the technical picture has turned neutral given that the price remained confined to a tight range, and traded around a horizontal 20 SMA, while the technical indicators hover around their mid-lines. Gold prices will likely remain range bound until the FED meeting outcome, and further appreciations in the metal will depend on how dovish the wording is.
US CPI News
Retail prices rose less than predicted over the past few months, the Bureau of Statistics says, suggesting the sluggish economy is keeping a lid on inflation. The bureau said the consumer price index (CPI) increased by 0.5 per cent over the September quarter and 1.5 per cent over the year.
Economists had predicted a rise of 0.7 per cent for the quarter and 1.7 per cent over the year to September. Of the CPI measures watched by the Reserve Bank, the trimmed mean rose by 0.3 per cent over the quarter and 2.1 per cent over the year, and the weighted median increased by 0.3 per cent over the quarter and 2.2 per cent over the year.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.