Gold Plunges amid Australia’s Inflation News

Gold inched lower on Wednesday, dragging the price of yellow metal to less than $1210 an ounce, following the release of some key economic news. The technical bias remains bearish because of a lower low in the recent downside move.

Technical Analysis

As of this writing, the yellow metal is being traded around $1203 an ounce. A support can be noted near $1171, the trendline support area ahead of $1150-$1156, the confluence of psychological number as well as horizontal support area and then $1133, the lower trendline support zone. The technical bias shall remain bearish as long as the $1337 resistance area is intact.

On the upside, a hurdle can be noted near $1240.58, the horizontal l resistance area  ahead of  $1275, the trendline resistance area and then  $1300, the psychological number as demonstrated in the given above daily chart.

Australia’s Inflation

Australian trimmed mean CPI rose less-than-expected in the last quarter, official data showed on Wednesday. In a report, Reserve Bank of Australia said that Australian trimmed mean CPI rose to a seasonally adjusted 0.4%, from 0.4% in the preceding quarter. Analysts had expected Australian trimmed mean CPI to rise 0.5% in the last quarter.

Trade Idea

Considering the overall technical and fundamental outlook, selling the precious metal around current levels appears to be a good strategy in short to medium term.


How useful was this post?

Click on a star to rate it!

Average rating / 5. Vote count:

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?'
Latest posts by Usman Ahmed (see all)
with No Comments 1188


Scroll Up