Upward Trendline to Underpin Gold – Quick Trade Plan on Friday

Following a minor correction from $1,850.37, the gold price (XAU/USD) is looking for a firmer cushion around $1,845.00. After falling to near $1,840.00, the precious metal displayed a responsive buying action. A responsive buying action occurs when market participants believe the asset is a good value bet.

On a broader level, the bright metal is trading flat, but releasing US inflation data will spark a surge in the counter. Investors are concerned that the US Consumer Price Index (CPI) shows no impact despite the Federal Reserve’s quantitative tightening measures (Fed).

According to market expectations, the annual US CPI will remain at 8.3 percent. In the last three months, the Fed has raised interest rates by 0.75 percent while implementing a rapid balance-sheet reduction program. One could argue that price pressures are so intense that extreme quantitative tightening measures are required to produce a significant drop.

Gold Rate Live

Meanwhile, the US dollar index (DXY) shows signs of fatigue after failing to break through Thursday’s high of 103.37. A higher-than-expected inflation figure will bolster the DXY bulls and set the stage for a faster ride north.

The yellow metal fluctuates between $1,828.55 and $1,874.16. It’s hovering around the bullish channel’s support line, and stochastic is attempting to gather positive momentum to motivate the price to resume the bullish trend that targets 1890.01 as the next major station.

In general, we will continue to a bullish trend for the foreseeable future unless it breaks and holds below the 1850.00 and 1838.10 levels. The gold prices overlap with the 21-period Exponential Moving Average (EMA) at $1,849.70.

Furthermore, the Relative Strength Index (RSI) (14) oscillates between 40.00 and 60.00, indicating that the asset is awaiting a trigger for a decisive move. Today’s trading range is expected to be between 1840.00 support and 1875.00 resistance. Good luck!