Gold Plunges amid Australia’s Inflation News

FXOpen

Gold inched lower on Wednesday, dragging the price of yellow metal to less than $1210 an ounce, following the release of some key economic news. The technical bias remains bearish because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the yellow metal is being traded around $1203 an ounce. A support can be noted near $1171, the trendline support area ahead of $1150-$1156, the confluence of psychological number as well as horizontal support area and then $1133, the lower trendline support zone. The technical bias shall remain bearish as long as the $1337 resistance area is intact.

Gold Plunges amid Australia’s Inflation News

On the upside, a hurdle can be noted near $1240.58, the horizontal l resistance area  ahead of  $1275, the trendline resistance area and then  $1300, the psychological number as demonstrated in the given above daily chart.

Australia’s Inflation

Australian trimmed mean CPI rose less-than-expected in the last quarter, official data showed on Wednesday. In a report, Reserve Bank of Australia said that Australian trimmed mean CPI rose to a seasonally adjusted 0.4%, from 0.4% in the preceding quarter. Analysts had expected Australian trimmed mean CPI to rise 0.5% in the last quarter.

Trade Idea

Considering the overall technical and fundamental outlook, selling the precious metal around current levels appears to be a good strategy in short to medium term.

 

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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.

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