Baxia Markets News

Make or Break: Gold Price Closes In on Key Level

Written by Baxia Markets | Sep 13, 2023 7:00:00 AM

XAUUSD nears key support after a deep 61.8% Fibonacci retracement. Despite its traditional safe haven status, gold faces a strong dollar challenge. Today's US CPI release is pivotal, signaling the Fed's rate hike stance. Economists anticipate lower CPI at 4.3% (previous 4.7%) and no change in US core CPI at 0.2% (previous 0.2%). A better-than-expected CPI outcome could sustain USD strength and boost rate hike prospects.

 XAUUSD Technical Overview 

The key support zone is at 1903-1909

The key resistance zone is at 1925-1930

Technically XAUUSD is Bearish due to several factors

  1. MA 50 is under MA 20

  1. CCI is below 0 level

  1. MACD signal line is below 0 level

 

The upcoming US CPI and Core CPI announcements carry the potential to induce high volatility in this trading pair. If the results surpass expectations, it may trigger a breach of the key support zone. Conversely, a mixed or lower-than-forecasted outcome could prompt a shift in sentiment for XAUUSD, turning it bullish.

 

Today Key Economic Releases to Watch 

UK GDP

  • forecast -0.2% vs previous 0.5%

US CPI

  • forecast 4.3% vs previous 4.7%

US Core CPI

  • forecast 0.2% vs previous 0.2%

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