Gold price found support near the $1,320 level and recovered recently against the US Dollar.
There are two bullish trend lines forming with support near $1,328 on the 4-hours chart of XAU/USD.
The US PPI in March 2018 posted a rise of 3% (YoY), more than the forecast of 2.9%.
Today, the US CPI report for March 2018 will be released, which is forecasted to increase by 2.4% (YoY).
Gold Price Technical Analysis
After a major decline, gold price found support near the $1,320 level against the US Dollar. The price traded higher and moved above the $1,330 resistance zone.There was also a break above the 50% Fib retracement level of the last decline from the $1,348 high to $1,319 low. More importantly, the price settled above the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour).On the downside, there is are two bullish trend lines forming with support near $1,328 on the 4-hours chart of XAU/USD. The trend line support is near the 200 SMA, which means the $1,328 level is a crucial area for buyers.As long as the price is above the $1,328 support, it may continue to move higher. On the upside, there is a connecting bearish trend line with resistance at $1,341 on the same chart. A break above $1,341 could clear the path for more gains towards $1,350 in the near term.Recently, the US PPI report for March 2018 was released by the Bureau of Labor statistics, Department of Labor. The market was looking for a 2.9% rise compared with the same month a year ago.The actual result was positive as the PPI increased 3% in March 2018. In terms of the monthly change, there was a rise of 0.3%.Overall, it seems like there could be ranging moves in gold price ahead of today’s US CPI and FOMC meeting minutes release.
Economic Releases to Watch Today
UK Industrial Production for Feb 2018 (MoM) - Forecast +0.4%, versus +1.3% previous.
UK Manufacturing Production for Feb 2018 (MoM) - Forecast +0.2%, versus +0.1% previous.
UK Goods Trade Balance for Feb 2018 - Forecast £-11.950B, versus £-12.325B previous.
US Consumer Price Index March 2018 (MoM) – Forecast 0%, versus +0.2% previous.
US Consumer Price Index March 2018 (YoY) – Forecast +2.4%, versus +2.2% previous.
US Consumer Price Index Ex Food & Energy March 2018 (YoY) – Forecast +2.1%, versus +1.8% previous.
There was also a break above the 50% Fib retracement level of the last decline from the $1,348 high to $1,319 low. More importantly, the price settled above the 200 simple moving average (green, 4-hour) and the 100 simple moving average (red, 4-hour).On the downside, there is are two bullish trend lines forming with support near $1,328 on the 4-hours chart of XAU/USD. The trend line support is near the 200 SMA, which means the $1,328 level is a crucial area for buyers.As long as the price is above the $1,328 support, it may continue to move higher. On the upside, there is a connecting bearish trend line with resistance at $1,341 on the same chart. A break above $1,341 could clear the path for more gains towards $1,350 in the near term.Recently, the US PPI report for March 2018 was released by the Bureau of Labor statistics, Department of Labor. The market was looking for a 2.9% rise compared with the same month a year ago.The actual result was positive as the PPI increased 3% in March 2018. In terms of the monthly change, there was a rise of 0.3%.Overall, it seems like there could be ranging moves in gold price ahead of today’s US CPI and FOMC meeting minutes release.