Gold Prices Were More Cautious on the Night of Focus on Inflation

Summary:

Before the release of the US CPI data for January at 9:30 tonight, the market trading will remain cautious, which is suitable for high-throwing and bargain hunting.

SELL XAUUSD

Close Time

CLOSED

1863.00

Entry Price

1825.00

1890.00

4110.11 -81.45 -1.94%

270.4

Pips

Profit

1825.00

1835.96

Exit Price

1863.00

Entry Price

1890.00

Fundamentals

During the Asian session on Tuesday (February 14th), spot gold fluctuated slightly and is currently trading at $1860/oz. The dollar index and U.S. Treasury yields extended their overnight declines, providing support to gold prices. However, before the release of the US CPI data for January at 9:30 tonight, the overall market trading is more cautious.

Judging from market expectations and the performance of the past several US CPI data, if the US CPI data meets expectations or weakens market expectations, gold prices will be biased to the upside. Conversely, if the CPI data is unexpectedly stronger than market expectations, gold prices will face certain downside risks in the short term.

In addition, several Fed officials are going to speak in the evening, and traders also need to pay attention. If Fed officials continue to make hawkish speeches, it is expected to weigh on gold prices.

Technical Analysis

Trading at the daily chart, MACD maintains the death cross with an expanding open. Although gold prices retreated after being blocked from the previous rebound, they were still supported by the MA5 around 1850. Therefore, the short-term trend was more variable.

Before losing the MA55, there is a chance for short-term gold prices to rebound in shocks, with initial resistance around the MA5 at 1863 and MA10 resistance around 1878. If this level could be recovered, it will add a short-term bullish signal. Further resistance refers to last Thursday's high at the 1890 mark, with strong resistance around the MA20 at 1903. If it breaks further upwards, a bullish signal in the middle line will be added.

Before breaking above the MA10, we also need to watch out for further downside risks for gold prices. If the MA55 is breached, gold could test further support around 1835, which is also near the Dec 27 high, and add to the short-term bearish signal. The Dec 13 high and Jan. 5 low support is around 1825, as is the 38.2% retracement support for the 1615-1960 rally. A further breaking down will strenthen a bearish signal in the middle line. XAUUSD: Gold Prices Were More Cautious on the Night of Focus on Inflation_1

XAUUSD: Gold Prices Were More Cautious on the Night of Focus on Inflation_1

Trading Recommendations

Trading Direction: Short

Entry Price: 1863.000

Target Price: 1825.000

Stop Loss: 1890.000

Support: 1860.000/1825.000

Resistance: 1886.000/1900.000

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