Gold bears eye weekly support ahead of US CPI

<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 bearish on daily timeframe<br />
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<li><span lang="EN-US" xml:lang="EN-US">4 potential targets identified on H4 chart.<br />
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<li><span lang="EN-US" xml:lang="EN-US">Bearish scenario invalidated above 2039.91</span></li>
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<li><span lang="EN-US" xml:lang="EN-US">Watch out for US CPI report this afternoon </span></li>
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<h3><span lang="EN-US" xml:lang="EN-US">After the spectacular bearish move on Monday 4th December, gold is back in bearish territory. </span></h3>
<p><span lang="EN-US" xml:lang="EN-US">This is reflected in the daily timeframe where prices are busy with an impulse in the current downtrend. Bears seem to be aiming for the next <strong>weekly support level around 1931.35 </strong>with the negative momentum increasing after the <strong>solid daily close below the psychological $2000 level.</strong> Nevertheless, looking at the 4-hour timeframe might give more insight into what to expect from the precious metal over the next few sessions.</span></p>
<p><img fetchpriority="high" decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDDaily_12122023.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="2a956f6c-6347-43b9-8e41-22ea38cbfb4c" data-src="/s3-static/users/user17/XAUUSDDaily_12122023.png" /></p>
<p><strong><span lang="EN-US" xml:lang="EN-US">Before we take a deeper dive into the technicals</span></strong><span lang="EN-US" xml:lang="EN-US">, it is worth keeping in mind that <strong>fundamental forces</strong> could impact the precious metals’ outlook this week. </span></p>
<h3><span lang="EN-US" xml:lang="EN-US">The <strong>incoming US CPI report</strong> released this afternoon could impact expectations around what actions the Fed will take in 2024, ultimately influencing gold. </span></h3>
<p><span lang="EN-US" xml:lang="EN-US">A <strong>softer-than-expected inflation</strong> figure may support gold, while a <strong>higher-than-expected figure</strong> has the potential to drag the precious metal lower.</span></p>
<h3><span lang="EN-US" xml:lang="EN-US">Shifting our focus back to technicals…</span></h3>
<p><span lang="EN-US" xml:lang="EN-US">The 4-hour chart validates the daily scenario with a downtrend in progress. The bearish impetus is further confirmed by the price being below the 50 Exponential Moving Average. Both the Momentum Oscillator and the Moving Average Convergence Divergence (MACD) are also beneath their respective base lines.</span></p>
<p><span lang="EN-US" xml:lang="EN-US">Attaching a modified Fibonacci tool to the trigger level below the last lower bottom at 1975.75 and dragging it above the 50 Exponential Moving Average at 2039.91, 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 potential target is at 1950.09 (Target 1). </span></h3>
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<h3><span lang="EN-US" xml:lang="EN-US">The second price target is likely at 1937.25 (Target 2).</span></h3>
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<h3><span lang="EN-US" xml:lang="EN-US">The third price target is possible at 1911.59 (Target 3) if the price has enough momentum to break through the weekly support level. </span></h3>
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<h3><span lang="EN-US" xml:lang="EN-US">The fourth and last price target is feasible at 1879.51 (Target 4) if the bears can continue their rule for long enough.</span></h3>
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<p><strong><em><span lang="EN-US" xml:lang="EN-US">If the price at 2039.91 is broken, this scenario is no longer valid. </span></em></strong></p>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/XAUUSDH4_12122023.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="6e6d1397-3c37-4320-a765-d5f7792238f3" data-src="/s3-static/users/user17/XAUUSDH4_12122023.png" /></p>
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