GOLD - USD - Gold retreats after higher inflation - 04/11/2024 (GMT)

Gold’s extremely strong gains paused this week after the higher print from inflation in the USA, but there’s currently no indication of a reversal of the trend. A significant retracement is also questionable. The main technical reference in the short term is the 20-day simple moving average which seems to be an important dynamic support. The main resistance is now likely to be the latest high around $2,365.

Buying saturation is clear from the slow stochastic. This has signalled overbought for the whole of April so far, so it’s difficult to envision another big move up immediately unless there’s a clear driver from the news. ATR has continued to make new highs recently, which would usually suggest that a change of the trend is unlikely anytime soon.

$2,400 seems like an obvious target if the price does continue upward next week. However, the uptrend seems to be fairly mature. With a chart like this, usually one would expect that the price needs to move at least slightly lower before another leg up. There’s no very important data from the USA until advance GDP and PCE on 25 and 26 April respectively, so monitoring the possible consolidation in the meantime is important to find the likely direction further ahead.

This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.