Gold Trading Analysis and Forecast OVERVIEW Gold has been trading in a range-bound channel with a support level of $1900 and a resistance level of $1916. The current market price of gold is $1904 per ounce. In this report, we will analyze the short-term trading opportunities in gold and provide an outlook for the upcoming trading session. Short-Term Trading Opportunities Short-term traders can trade within the consolidation range of $1900 to $1916. However, there are two scenarios that can impact the direction of gold prices in the near term. Scenario 1: Positive CPI Data If today's CPI data is positive, it could strengthen the US dollar, leading to a potential break below the $1900 support level. In this case, traders should wait for a confirmation of the breakout and a close below $1892 on a higher time frame. After confirmation, traders can enter sell trades in the retest zone between $1900 and $1902, with a target of $1885. Scenario 2: Negative CPI Data If today's CPI data is negative, it could weaken the US dollar, leading to a potential break above the $1916 resistance level. In this case, traders should wait for a confirmation of the breakout and a close above $1916 on a higher time frame. After confirmation, traders can enter buy trades in the retest zone between $1900 and $1902, with a target of $1923 to $1935. Outlook for the Upcoming Trading Session The market is eagerly waiting for the release of the CPI data in the US session today. The CPI data is a high-impact news event that can significantly impact gold prices. Therefore, traders should be cautious and wait for a confirmation of the breakout before entering any trades. The short-term outlook for gold prices will depend on the outcome of the CPI data.
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