Gold Remains Elevated by Weak Dollar; US Inflation Data Eyed for Fresh Signals

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Spot gold is consolidating below a three-month high ($ 1845) breathing down from last week’s 3.5% last week (the largest one-week rally since late July 2020).

A weaker dollar after a few U.S. jobs keeps the price of the metal.

A weekly close above a psychological $ 1800 barrier generated a recent bullish signal, which was increased by a repeated daily close above the next pivot barrier at $ 1828 (Fibo 38.2% from $ 2074 / $ 1676).

The current price of the yellow metal currently continues around the midpoint of a thick weekly Ichimoku cloud, with long upper shadows of daily candlesticks Friday, generating initial signals of stalling, but a long tail of the Tuesday candlestick suggests that the downside so far protected by strong offers.

Traders are expecting U.S. inflation data on Wednesday, which is expected to see new signals as consumer price hikes will give more hints of the Fed’s next steps.

Daily over-the-counter studies warn of further mitigation, with initial support given by a rising 5DMA / today’s low ($ 1820/17) and $ 1800 level (reinforced by rising 10DMA) that needs to hold extended dives and keep bulls in play for attack at 200DMA ($ 1851) and February 10 lower low ($ 1855) and possible extension to $ 1875 lower platform / 50% retracement of $ 2074 / $ 1676 down.

Resolution: 1845; 1851; 1855; 1875
Sup: 1820; 1800; 1796; 1786

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