Gold on standby mode as US CPI looms

<p><strong>By <a href="http://investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a> </strong></p>
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<li><span lang="EN-US" xml:lang="EN-US">Gold in a correction wave of W1 uptrend<br />
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<li><span lang="EN-US" xml:lang="EN-US">Possible bullish momentum building on D1/H4 timeframe<br />
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<li><span lang="EN-US" xml:lang="EN-US">4 potential bullish targets if 2042.09 breached </span></li>
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<li><span lang="EN-US" xml:lang="EN-US">Bullish scenario invalidated below 2020.31 </span>​​​​​​​</li>
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<li><span lang="EN-US" xml:lang="EN-US">Incoming US CPI report could trigger volatility</span></li>
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<h3><span lang="EN-US" xml:lang="EN-US">Gold prices were steady on Thursday ahead of a key US inflation report that may influence market expectations around when the Federal Reserve will cut interest rates this year.</span></h3>
<p><span lang="EN-US" xml:lang="EN-US">The precious metal is busy with a correction wave in an uptrend on the weekly timeframe which could act as a possible area of trendline support. Looking at the daily charts, a downtrend is advancing but the price is getting closer to a weekly support level and a higher bottom might already be in progress. </span></p>
<p><img fetchpriority="high" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDWeekly_11012024_0.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="9ba006e0-0802-4c05-a143-9249e8f56166" data-src="/s3-static/users/user17/XAUUSDWeekly_11012024_0.png" /></p>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDDaily_11012024.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="a4cb2089-0a8a-4f85-93c6-81c43360f718" data-src="/s3-static/users/user17/XAUUSDDaily_11012024.png" /></p>
<p><span lang="EN-US" xml:lang="EN-US">A significant move could be around the corner with the <strong>incoming US CPI report acting as a fundamental catalyst.</strong> More evidence of cooling price pressures may boost bets around the <strong>Fed cutting interest rates</strong>, supporting gold prices as a result. However, a hot reading could dampen hopes around the Fed taking action early this year – potentially dealing a blow to zero-yielding gold.  </span></p>
<h3><span lang="EN-US" xml:lang="EN-US">Redirecting our attention back to the technical… </span></h3>
<p><span lang="EN-US" xml:lang="EN-US">A look at the 4-hour time frame will yield more insight.</span></p>
<p><span lang="EN-US" xml:lang="EN-US">The 4-hour chart is still in negative territory with the price <strong>dipped below the 50 Exponential Moving Average</strong>. The market structure has given a warning though by making a higher bottom and traders will be watching closely to see how the market reacts to the upcoming CPI news event.  If buying pressure increases and the price goes above 2042.09, a long opportunity will be on the books. </span></p>
<p><span lang="EN-US" xml:lang="EN-US">Attaching a modified Fibonacci tool to the trigger level at <strong>2042.09 </strong>and dragging it to the higher bottom at <strong>2020.31,</strong> four possible </span><span lang="EN-US" xml:lang="EN-US">targets can be determined:</span></p>
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<h3><span lang="EN-US" xml:lang="EN-US">The first target is at 2050.80 (Target 1). </span></h3>
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<h3><span lang="EN-US" xml:lang="EN-US">The second price target is likely to be 2055.16 (Target 2).</span></h3>
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<h3><span lang="EN-US" xml:lang="EN-US">The third price target is possible at 2063.87 (Target 3. </span></h3>
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<h3><span lang="EN-US" xml:lang="EN-US">The fourth and last price target is viable at 2074.76 (Target 4) if the buy pressure can continue for long enough.</span></h3>
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<p><span lang="EN-US" xml:lang="EN-US">If the price at <strong>2020.31 is broken</strong>, this scenario is no longer valid. </span></p>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDH4_11012024.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="90484bf3-e2ff-48d8-8e9b-d07ba8036c2f" data-src="/s3-static/users/user17/XAUUSDH4_11012024.png" /></p>
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<p><img loading="lazy" decoding="async" class="size-full wp-image-54242 alignleft" src="https://www.investmacro.com/articles-analysis/wp-content/uploads/2014/07/Forex-Time-Logo.png" alt="Forex-Time-Logo" width="262" height="90" /><strong>Article by <span><a href="https://www.investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a></span></strong></p>
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