📈 GOLD → CPI and FED. What to expect from the market?
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GOLD is stopping after correction, traders are afraid to make premature decisions as news is ahead. A consolidation below 2315 is forming
False break of support leads the price to retest 2310-2315, after which traders take a breather before the news.
All eyes remain on the upcoming big events, CPI and Fed. Key US CPI data will help shape the Fed's view on interest rates, which will significantly impact the value of the US dollar and gold prices in the near term. The market is expecting neutral (no change) data, which could generally keep the same fundamental backdrop. But, all eyes are on the actual data as the market is still confused by last Friday's higher NFP than expected.
Nevertheless, any initial reaction to the US CPI data may be temporary as gold traders will quickly switch to the FOMC & FED meeting.
Resistance levels: 2315, 2325, 2354
Support levels: 2305, 2291, 2267
Technically and fundamentally, gold is weak at the moment. On the background of high volatility, the price may try to break through 2325 and test the liquidity area of 2335-2345, then move to the decline phase, if the fundamental background is suitable for this. Risks of further decline are quite high, but the coming news can both strengthen this decline and break the market structure.