- Gold price bulls eye a break and hold above $1,845 which coincides with a 38.2% Fibonacci retracement.
- To the downside, $1,765 is eyed while below the week's low and December 2022 resistance structure.
Gold price ended Friday higher in the spot market, adding 0.33% on the day rallying from a low of $1,818.92 to a high of $1,843.61 as the US Dollar moderated from session highs.
The economic calendar has been a busy one in the United States, resulting in an underlying threat to the Gold price with US inflation rising at a more-than-expected pace 6.4% in January, Retail Sales booming above forecasts, and the Producer Price Index arriving firmly above expectations. The data came in contrast to the market's pricing of a more dovish Federal Reserve and was backed by several hawkish central bank officials speaking out around the events making for a bullish cocktail for the US Dollar and US Treasury yields.
The US Dollar index rallied to its highest since January 5, 104.667 while US Bond yields in the 10-year note were seen paying 3.927% before tumbling on Friday in the US session, breaking firmly to the downside and closing below key structures:
Zoomed in ...
Thursday's lows are vulnerable for the open on an additional push below 3.82% with the market already broken down casting a bullish corrective theme over the Gold price for the start of the week, something forecast last Thursday in anticipation of a short squeeze to end the week to square the books:
The outlook for the week ahead will be determined by the opening balance. However, with prospects of a solid correction into shorts on a break and hold above $1,845 that coincides with a 38.2% Fibonacci retracement of the prior daily bearish impulse, the prior week's lows near $1,850 are eyed:
On the flip side, the downside to $1,765 is eyed while below the week's low and December 2022 resistance structure near $1,820/25:
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