Gold Eyeing Another Move Above $2,000?
2023.07.20 04:17
- Progress on inflation driving gold’s gains
- UK becomes the latest to make significant improvements
- $2,000 a major psychological level
broke higher again on Tuesday after briefly paring gains late last week and early this.
Lower yields and a weaker dollar are continuing to boost its appeal on the back of some more promising inflation data and lower interest rate expectations.
That inflation data has been both widespread, from the US to the eurozone and now the UK, and at both the headline and core levels, which is what’s offering so much hope.
Will lower inflation help gold to recapture $2,000?
The yellow metal broke above $1,960 yesterday before running into some resistance around $1,980.
Daily
Source – OANDA on Trading View
A break above here could see it close in on $2,000 which is the next major barrier to the upside. A break of this may indicate traders have turned bullish on gold after two months of declines as up until now, it may have simply been experiencing a correction of recent declines.
Below, $1,940 still looks key, being a level that’s triggered so much support and resistance over the last four months. A break below could be perceived to be bearish and a sign that the move in July was in fact a correction and nothing more.
At this point, $1,900 could be key, with the 200/233-day simple moving average band below that a potential area of interest.
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