Early in the European session, Gold (XAU/USD) is trading around 1,884.24, close to the highs of 1,886.47 and with a strong bullish trend.
It is likely that in the next few hours, gold will continue to rise and may reach the resistance zone around 1,895 and could reach the +1/8 Murray located at 1,906.
According to the daily chart, we can see that the eagle indicator is showing strong overbought signs and it is likely that a technical correction will occur in the coming days.
The key will be to wait for gold to trade below 1,875 (8/8 Murray), then there could be a decline towards 7/8 Murray located at 1,843.
Investors are waiting for the inflation report to be published during the American session. Some believe that this report will be below expectations.
If the annual CPI is above 6.5%, it could favor the US dollar which could exert strong pressure on gold. On the contrary, if the reading is below this level, we could expect gold to quickly reach the area of 1,900 and even rise to 1,937 (+2/8 Murray).
In the next few hours, gold is likely to consolidate above 1,875 and below 1,887. Above 1,887, we could expect gold to reach the key zone of 1,900. Below 1,875 and 21 SMA, we can expect gold to drop and the price could reach 1,843 and could even decline to 1,812 (6/8 Murray).
Read next: The EUR/USD Pair Maintains A Steady Upward Trend, The Aussie Pair Keeps Close To 0.69| FXMAG.COM
Relevance up to 04:00 2023-01-17 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
