empty
 
 
19.01.2022 10:38 PM
Gold shines amidst UK higher inflation

The price of Gold rallied today. It was traded at the 1,842.89 level at the time of writing versus 1,810.34 today's low. Technically, the price passed above strong upside obstacles signaling strong buyers and potential upside continuation.

The UK CPI rose by 5.4% exceeding 5.2% expected and compared to 5.1% growth in the previous reporting period. Also, the Core CPI reported a 4.2% growth versus 3.9% expected. XAU/USD's growth was supported by inflationary pressure, Omicron, and geopolitical tensions between Russia and Ukraine.

XAU/USD ignored major resistance

This image is no longer relevant

Gold found support on the weekly pivot point (1,812.66) failing to reach and retest the outside sliding line (SL1). Now, it has jumped above the 1,831.83 - 1,834.19 resistance area signaling strong buyers and potential further growth.

Failing to stabilize below the lower median line (LML) indicates strong buyers. Still, after its amazing rally, XAU/USD could come back down to test and retest the 1,834.19 before resuming its upwards movement.

Gold outlook

A minor consolidation above the 1,843.19 - 1,831.83 could bring new long opportunities. Gold could extend its growth as long as it stays above the broken resistance area. The next major upside target is represented by the inside sliding line (SL).

Ralph Shedler,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $1000 more!
    In April we raffle $1000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback