Fresh bulls establish above key $1800 level, traders await US inflation data for fresh signals
Spot gold rises for the third straight day, driven by overall weaker dollar.
Recovery from $1782 (2022 low posted on Jan 7) rose above pivotal $1800 barrier (psychological / 200DMA), retracing over 50% of $1831/$1782 bear-leg, with repeated daily lose above $1800 level to generate positive signal and improve near-term sentiment.
Daily studies in bullish setup support the action which pressures next important barriers at $1812/15 (Fibo 61.8% / weekly cloud base / 200WMA), violation of which would further boost bulls.
Investors await US inflation data (due on Wednesday) as the metal is considered a hedge against high inflation and forecast show that the price pressures in the US will likely increase further in December that would boost gold’s price, but general expectations for Fed’s four rate hikes this year would limit gains, as gold is highly sensitive to rising US interest rates.
Res: 1812; 1815; 1820; 1829
Sup: 1800; 1794; 1790; 1786