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Gold prices experienced a brief decline following a stronger-than-expected Consumer Price Index (CPI) report from the United States, dipping below the $4,100 mark and reaching a low just under $4,080. However, the precious metal has since rebounded, recovering to around $4,140 as the dollar and Treasury yields reversed their upward trends, providing some relief for gold buyers.
The recent price movements indicate a potential shift in market dynamics, with buyers showing a willingness to defend the $4,100 support level. Despite this rebound, significant resistance remains, particularly around the $4,150 to $4,164 range, where key hourly moving averages have historically posed challenges for gold prices. The $4,200 to $4,220 region is identified as a major hurdle, with previous attempts to surpass this level having been thwarted by sellers.
While the daily chart suggests that the $4,100 to $4,120 area has been a crucial support zone since late September, gold is still trading below its 100-day moving average of $4,245. This adds another layer of resistance, indicating that while dip buyers have managed to stabilize prices temporarily, a more convincing upward trend will require overcoming the $4,200 to $4,220 resistance zone.
Source: KLEA News