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Gold Breaks Lower Post CPI Data

Published 02/15/2023, 04:48 AM
Updated 07/09/2023, 06:31 AM

Gold made a high for the day exactly at first resistance at 1870/74 when CPI was released. Shorts worked perfectly on the immediate slide as far as 1843.

XAU Chart

Silver outlook is negative if we continue to hold below 2200 (a high for the day exactly here before a slide to 2159 yesterday)

Silver Chart

WTI Crude April remains stuck in a wide 10-point range from $7200 up to $8200.

WTI Chart

Today's Analysis

Gold started to break lower as we hit 1843. Holding below minor resistance at 1860 today keeps the pressure on for 1830/25. Eventually, we could fall as far as 1790/80.

Minor resistance at 1859/61 could hold a rally this morning. Above 1864 however, allows a recovery to strong resistance at 1870/73. Shorts need stops above 1877. A break higher, however, can target 1885/90.

Silver holding resistance at 2200/2220 as predicted, with a high for the day exactly here targets 2170/60 (hit yesterday with a low for the day exactly here, in fact) & perhaps as far as 2135/30 today. Further losses can target the 200-day moving average at 2100/2095.

Gains will likely be limited in the bear trend, with the first resistance at 2200/05. Shorts need stops above 2110. A break higher targets a sell opportunity at 2230/35. Shorts need stops above 2240.

WTI Crude first support at 7880/40 for a potential scalping opportunity. A bounce from here targets 7950. If we continue higher, look for 8000/8020 before a retest of the February high at 8045/65.

Bulls need a break above the 100-day moving average at 8100 to retest the January high at 8250/8290 - strong resistance at here from the 23.6% Fibonacci & the 500-day moving average. Shorts need stops above 8350. A break higher is an important buy signal.

Longs at first support at 7880/40 stop below 7800. A break lower can target strong support at 7760/20. Longs need stops below 7690.

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