Gold prices have been consolidating below the $2,530 resistance level against the US Dollar. There is a key contracting triangle forming with support at $2,495 on the 4-hour chart. Despite staying above the $2,480 zone, the price has struggled to make significant gains. The recent upward move above $2,500 was met with resistance at the $2,520 and $2,530 levels. The 100 Simple Moving Average and the 200 Simple Moving Average have provided stability to the price, but a break below the $2,480 support could signal further downside movement. If this support is breached, the price could head towards $2,465 and the 200 SMA. On the upside, breaking above $2,530 could lead to a rally towards $2,550 and $2,565.
Oil Prices Under Pressure
Meanwhile, oil prices are facing downward pressure as they extended losses below the $68.50 level. There is a possibility of further downside movement in the near term, with the $65.00 support level being a potential target. The overall outlook for oil remains bearish, as market conditions and global demand continue to weigh on prices.
US Consumer Price Index Outlook
In other news, the US Consumer Price Index is expected to increase by 2.6% in August 2024 on a year-over-year basis, down from the previous reading of 2.9%. This slight decrease in CPI could have implications for the broader market sentiment and impact the price movements of gold and oil.
As gold prices consolidate below the $2,530 resistance level and oil prices face downward pressure, investors are closely monitoring key support and resistance levels. The formation of a contracting triangle in gold suggests potential breakout opportunities, while oil prices are susceptible to further losses. The upcoming CPI data release will provide more clarity on inflation trends and could influence market dynamics. Traders should remain cautious and adapt their strategies based on evolving market conditions.