XAUUSD, H4
The US June inflation figures reported yesterday were up 0.9%, the highest monthly inflation rate since June 2008 and above the 0.5% projected. The core inflation index (excluding energy and food prices) was also 0.9%, up from the 0.7% seen in May.
This week, gold prices are still swinging between 1,790 and 1,818 which is the price frame of last week. As a result, the H4 timeframe is now seen as a continuation of the price rectangle corresponding to the MACD still above the 0 line, as well as the RSI still over 50 at 56 There is a key support at the MA50 at the psychological level of 1,800 and key resistance at the MA200 at 1,830, and the reversal in bond yields (now at 1.4%) this week will also become a major hurdle for gold prices.
Meanwhile the daily time frame Golden Cross (the intersection of MA50 and MA200) is an important signal for the people who wait to buy. It has been trying to hold the price above 1,800 since last week. However, the price is now still below both MAs and the MACD is moving up but is still below the 0 line and the RSI is crossing the 50 level. To go into a medium-term uptrend Gold prices need to pass MA50 and MA200 first.
In addition to the continuing outbreak of the Delta virus, moves to watch for today include the PPI report and Fed Chairman Powell’s statement to Congress.
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Chayut Vachirathanakit
Market Analyst – HF Educational Office – Thailand
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