Gold continues to pullback from new historic highs Wednesday as the latest economic numbers out of the US suggests the economy remains resilient and set for a soft landing, i.e. no need for the Fed to ease aggressively. While it may be too early to argue that Gold has topped off we would note that some of its major buyers has been absent for the market for the past few months, i.e. PBOC. Note that it has been this demand from central banks and fears of prolonged inflation that drove Gold’s rally earlier in the year.
Resistance
- 2483.72 – New Historic High
- 2474.93 – Intraday Lower High
- 2451.64 – 4H Double Top Trigger
Support
- 2424.51 – Intraday Consolidation High
- 2400.24 – Intraday Consolidation Floor
- 2376.03 – 20D Moving Average
XAUUSD managed to trigger a double-top in 4H charts ahead of the open of Asian markets. The move comes as intraday stochastic push for oversold levels and the daily stochastic comes off overbought areas. For now we have already tested the immediate objective of the 4H double top though a break of 2424.51 may still be seen as a possible entry point as we risk developing into a pin bar in the weekly chart. Alternative entry will be long hourly wicks coming off 2451.64.
