2. Points To Be Discussed Today:
• Gold Price (XAU/USD) Is Up
• Gold Price (XAU/USD) Outlook
• Gold Price (XAU/USD): Daily Chart
• XAU/USD Eyes $1,820 As Next Target
• How Is XAU/USD Technically Positioned?
• Gold Fundamental Overview
• Gold Bullish
3. The US Consumer Price Index
• A stronger-than-expected reading for the US
Consumer Price Index has spurred a choppy day
of trading, which has ultimately ended with gold
price shooting towards the $1800 mark.
• The headline US CPI number came in at 0.4%,
which beat the estimated and the previous
number of 0.3%. The Core CPI came in as
expected at 0.2%, beating the last number at
0.1%.
4. Gold Price (XAU/USD) Is Up
• The inflation data has spurred comments from
several Fed policymakers, who seem
unanimous that the tapering of the bond-
buying program of the FOMC will start in
November.
• Gold price (XAU/USD) is up 1.87% as of
writing, buoyed by falling US long-term yields.
5. Gold Price (XAU/USD) Outlook
• The price action has broken the upper limit of
the rectangle pattern, taking out the 1789.49
resistance with an intraday violation.
• This leaves 1800.00 and 1815.20 as the
immediate targets to the north for the bulls.
• On the other hand, failure to sustain the
violation above 1789.49 could lead to a
pullback.
6. Gold Price (XAU/USD) Outlook - I
• Such a move targets 1763.30 and 1741.01 in
the near term.
• Gold price action has rarely strayed above
1815 or below 1699 in recent months, and
these boundaries may continue to serve as
the limits of price action heading into
November’s tapering date.
8. Gold Price Analysis: XAU/USD Eyes
$1,820 As Next Target
• XAU/USD has hit $1,800, the highest in a
month.
• The Confluence Detector is showing is that
gold's next big upside target is $1,820.
• Gold is not a dream risk-off hedge, nor is
Bitcoin.
• Falling yields have always been good for gold –
and this time, the precious metal seems to have
found its feet regardless of the Treausiries.
9. 10-year Bonds Sent XAU/USD
Shooting Higher
• Tuesday's slide in returns on 10-year bonds
sent XAU/USD shooting higher, and it stayed
there also after yields crept up once again.
• One of the explanations for the recent rise is
the hint from the Fed that the pace of bond-
buying will be reduced only gradually – 15
billion fewer dollars worth of buys every
month rather than $20 billion.
10. How Is XAU/USD Technically
Positioned?
• The Technical Confluences Detector is showing
that gold faces some resistance at $1,802, which
is the convergence of the 100-day Simple Moving
Average, the Bollinger Band 15min-Upper, and
the previous 4h-high.
• The more significant line is $1,820, which is
where the Pivot Point one-month Resistance 1
and the PP one-day R2 meet up.
• Immediate support awaits at $1,797, which is the
confluence of the 200-day SMA and the PP one-
week Resistance 2.
11. How Is XAU/USD Technically
Positioned? - I
• The next line to watch is $1,791, which is
a juncture of indicators including the
Fibonacci 61.8% one-month and the SMA
100-15m.
• Lower, strong support awaits at $1,777,
which is where the PP one-week, the 50-
day SMA, and the SMA 50-1h all
converge.
14. Gold Fundamental Overview
• Falling yields have always been good for gold –
and this time, the precious metal seems to have
found its feet regardless of the Treasuries.
• Tuesday's slide in returns on 10-year bonds sent
XAU/USD shooting higher, and it stayed there
also after yields crept up once again.
• One of the explanations for the recent rise is the
hint from the Fed that the pace of bond-buying
will be reduced only gradually – 15 billion fewer
dollars worth of buys every month rather than
$20 billion.
16. Gold Faces Rejection At 200-DMA,
Will It Manage To Recapture It?
• “Gold bulls now remain wary amid
increasing calls for an earlier Fed rate
hike.
• Traders look forward to a fresh batch of
the US economic releases and Fedspeak
for fresh trading opportunities in gold
price while the Fed sentiment will
continue to lead the way.”
17. Additional Upside In Gold Price
• “Going forward, any retracements will
meet initial demand at the $1777 50-
DMA resistance-turned-support, below
which the 21-DMA at $1760 will come
into play.”
• “Daily closing above the critical
resistance around $1796-$1799 is
needed to unleash additional upside in
gold price.
18. Relevant Bullish Target
• That price zone is the confluence of the
bearish 100 and 200-DMAs.
• The next relevant bullish target is
envisioned near $1807-$1809, mid-
September highs.
• If the latter gives way, then a fresh
upswing towards the September highs of
$1834 will be inevitable.”
