Gold Holds Steady Above Key Resistance Amid CPI News and Fed Rate Hike

Following the recent CPI news, gold surged past the daily resistance level of $1,808.00, closing above it for the first time. Despite a slight pullback after the Federal Reserve’s interest rate decision, gold remains resilient, showing no signs of discouraging bulls or empowering bears.

Since its March 2022 peak, gold has recovered nearly half of its losses, establishing a strong demand zone around $1,621.40. This area formed a robust triple bottom pattern, leading to consecutive higher highs and a break above the downward trend line. After a successful retest around $1,730.00, new support at this level prevented a return to the bearish trend. With the price now above the 200 EMA, further evidence suggests a possible trend reversal.

Tuesday’s close above $1,808.00 could signal a buying opportunity, especially if gold breaks the top wick of the daily candle near $1,825.00. Although the Federal Reserve’s 50-basis-point rate hike—the last of the year following four consecutive 75-basis-point hikes—caused a minor dip, gold has remained above the $1,800.00 mark. Jerome Powell indicated that rates are expected to remain elevated through 2024, yet gold’s resilience suggests this might be the year’s final significant event affecting the metal.

For price targets beyond $1,825.00, the MTF Supply and Demand Orderblock indicator could be used to identify supply and demand zone targets. Starting at $1,865.00, these targets may provide insights into the strength of any bullish trends and potential reversal points.