Home Gold Price Consolidating at $1,970, Awaits Canadian CPI

Gold Price Consolidating at $1,970, Awaits Canadian CPI

  • The gold correction could be only temporary.
  • The median line (ml) is seen as a dynamic support.
  • The Canadian CPI and the FOMC Minutes should move the rate.

The price of gold is going down right now, and it might go even lower. Currently, it’s at $1,971, which is quite a bit less than the highest point today, which was $1,985. This drop is normal after a period of growth.

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Even though the US Dollar went down compared to other currencies, gold still dropped. The US Building Permits and Housing starts were better than expected on Friday. Today, the US will share the CB Leading Index, and there might be a 0.5% drop.

Tomorrow, some important things are happening that could affect the market. The FOMC Meeting Minutes, RBA Monetary Policy Meeting Minutes, and Canadian inflation figures are coming out. The Consumer Price Index might show a 0.2% growth after a 0.1% growth last time.

If inflation goes up, the BOC might have to make some decisions in their meetings, which could hurt the gold price. Also, data about manufacturing and services could make a big impact at the end of the week.

Gold price technical analysis:

Gold price
Gold price hourly chart

Looking at the technical side of things for XAU/USD, it hit a roadblock at the 150% Fibonacci line, and now it’s going down. There’s a strong resistance around $1,996 that’s preventing it from going up. The rate tested the upper median line (uml) and is now moving towards the weekly pivot point of $1,968, which is a solid support level. The median line (ml) is like a moving support and a target for the downside.

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If the rate breaks these support levels, there could be a bigger drop, but it might just be a temporary setback. The rate might be taking a breather to gather more positive energy before going up again. Watch out for fake breakdowns below the median line (ml) because they could signal a new upward trend.

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Olimpiu Tuns

Olimpiu Tuns

Olimpiu Tuns graduated with a Master in Business Administration and is a seasoned Market Analyst / Trader / Trainer with 10 years of experience in the financial markets having expertise in Forex, Commodities, Index, Cryptocurrencies, and Stocks. He worked as a Market Analyst for three major brokerage companies, as a prop trader, and as a contributor/content creator for news portals and educational platforms.