📈 Retest of descending channel resistance in front of PPI..
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GOLD is forming a double bottom from which a rally towards strong resistance is forming. CPI showed worse than expected data, surprisingly. Manipulation? Price has not yet moved out of the corrective channel. Ahead of PPI
Annual inflation fell from 2.5% to 2.4% (expected 2.3%). The probability of a 0.25% interest rate cut in November rose to 86% (vs. 0.5%) The disappointing Initial Jobless Claims data in the US overshadowed the hot CPI data for September, keeping the hope of a rate cut in November...
Ahead is PPI, a fairly important report that could affect prices...
The metal is trapped in a descending channel and there is a huge liquidity density above 2645. The bears, the custodians of this liquidity, may put aggressive pressure if PPI shows strong data...
Resistance levels: 2645, 2651, 2660
Support levels: 2637, 2623, 2600
Technically, gold is in a correction phase. From the bottom of the channel a strong movement of 2% has been formed and there is not much potential to break through the resistance. The most probable outcome is a decline after a false breakdown or consolidation below 2640. BUT! It is not excluded that a surprise in the news can turn the picture in the opposite direction....