XAUUSD : Gold continues to rise for the 4th day. Keep an eye on CPI inflation numbers today 12/10/2023

The price of gold has changed direction to the uptrend. Gives the view that the Buy side is the advantageous side today. Wait for the price to drop down to the support level before entering Buy.

Fundamentals

Global gold prices closed at 1875 USD/oz, supported by the weakening dollar. and the fall in US bond yields. After the minutes of the latest Fed meeting reflecting the attitude of Fed officials who are more cautious in conducting monetary policy. has encouraged investors in the market to view The Fed may not be able to continue raising interest rates, or the Fed may not be able to keep interest rates high for long. Moreover, while investors buy gold as a safe asset, It comes amid concerns about fighting between Israel and the Palestinian armed group Hamas.

For today, continue following the war situation between Israel and Hamas. If the situation worsens, gold prices may continue to surge. Also keep an eye on the release of a report from the US Department of Labor which will reveal the Consumer Price Index (CPI) for September if the US CPI inflation rate slows down as the market expects or slows down more than expected. will reduce expectations that the Fed will raise interest rates It will be a positive factor for gold immediately. and the number of people applying for weekly unemployment benefits It is expected that there will be more people applying for welfare than last time. Khat Gar plus gold

Latest US policy interest rates

The latest US interest rate is still at the level of 5.25-5.50%. Most recently, the market still expects that the Fed is likely to maintain interest rates at the November meeting with an expectation of 92.4%, while another 7.6% expects the Fed to raise interest rates. In the said month, according to CME GROUP

Technical analysis

Gold prices continue to rise. During the day, it was able to stay above the support level and not fall below $1,860, causing continuous buying back in. It was able to push the gold price up to more than $1,870 before closing down slightly. As a result, the overall gold price moved in a short-term uptrend. However, the RSI signal on the 4H chart is still moving in the area. Overbought indicates that every time the gold price moves up, there may be an opportunity to switch back down. For today, we recommend waiting to buy according to the support line.

important economic figures

1.At 7:30 p.m., report the Basic Consumer Price Index. Food and energy not included.

Forecast 0.3%, previous figure 0.3% (neutral forecast for gold)

2.At 7:30 p.m., report the Basic Consumer Price Index m/m.

Forecast figure 0.3%, previous figure 0.6% (positive forecast for gold)

3.At 7:30 p.m., report the Basic Consumer Price Index y/y.

Forecast figure: 3.6%, previous figure: 3.7% (positive forecast for gold)

4. At 7:30 p.m., the number of people applying for unemployment benefits.

Forecast number 211K, previous number 207K (positive forecast for gold)

There are interesting support and resistance levels as follows:

Resistance 2 : 1895

Resistance 1 : 1885

Support line 1 : 1875

Support line 2 : 1870