The idea of an easy monetary policy in the US continues to drive sentiment for gold with the latest CPI from the US at 3.0% annualized against a 3.1% consensus and the headline month-on-month rate contracting at -0.1%. With the PBoC absent from the market however we have doubts on the idea of pushing historical highs further particularly as the thought of inflation it self is actual whats driving demand for the yellow metal.
Resistance
- 2450.07 – Historic High
- 2433.68 – Intraday Consolidation Resistance
- 2424.57 – Yesterday’s High
Support
- 2409.70 – Intraday Consolidation Floor
- 2392.90 – Last Week’s High
- 2378.00 – Intraday Consolidation Floor
XAUUSD turned out among the big winners Thursday coming to within range of the historic high with a $53 spike. Daily charts show some scope with the historic high at 2450.07 and little resistance of note. We do have a weekend coming up and a bearish divergence in the hourly charts. Immediate risk for us will be for a pullback though we view 2390.90 as a possible entry point for new longs. A break of Yesterdays highs is also a bullish entry point, while shorts may be taken on a drop through 2409.70 with limited downside objective.
