Careful with gold longs
4H Chart
Daily Chart
Gold managed to rally yesterday on the back of the US inflation data which posted the highest reading since the 2008 financial crisis, fueling fears towards hyperinflation and possible intervention by the Fed soon. However, Gold is unable to break above $1,900/Oz yet and the technical indicators are still favoring further downside retracement ahead. As noted earlier this week, any upside move is likely to remain capped below that solid resistance. On the downside view, retesting 1870 and possibly 1860 is still possible ahead of the Federal Reserve decision next week.
| S3 | S2 | S1 | Pivot | R1 | R2 | R3 |
| 1829.85 | 1859.68 | 1879.10 | 1889.51 | 1908.93 | 1919.34 | 1949.17 |