Home Gold Price Maintains Up Bias with Focus on US CPI, FOMC

Gold Price Maintains Up Bias with Focus on US CPI, FOMC

  • The gold price remains bullish as long as it stays above 2,338.
  • The US data should show sharp movements.
  • Only a new higher high activates further growth.

The gold price climbed as high as $2,365 in the last trading session, marking a fresh all-time high. The metal has now retreated a little and is trading at $2,345 at the time of writing.

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Today, anything could happen, as the economic calendar is filled with high-impact events. The RBNZ left the monetary policy unchanged, so the Official Cash Rate remained 5.50%.

Later, the US Consumer Price Index could report a 0.3% growth in the last month versus a 0.4% growth in February. The CPI y/y may announce a 3.4% growth after a 3.2% growth reported in the previous reporting period, while the Core CPI is expected to register a 0.3% growth.

Higher inflation could lift the greenback and punish the yellow metal. The volatility should be high before and after the US data dump.

Furthermore, the FOMC Meeting Minutes and the BOC also represent high-impact events. The Bank of Canada should keep the Overnight Rate at 5.00%, but the FOMC minutes could change the sentiment.

Gold Price Technical Analysis: Bearish Formation

Gold ptice
Gold 1-hour chart

Technically, the XAU/USD found resistance at the weekly R1 of 2,364, and now it challenges the uptrend line, which is the flag’s support. It has dropped below this dynamic support, but the breakdown could still be invalidated.

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The bias remains bullish as long as it stays above the $2,338 former low. A new lower low, removing this downside obstacle, can activate more declines.

On the other hand, false breakdowns may announce a new bullish momentum. Still, only a new higher high, a bullish closure above $2,365, activates further growth.

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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.