Gold prices, on Wednesday, January 18, retreated after soaring for seven consecutive sessions, as the US Dollar firms in the short term. T
This move has been predicated on US CPI data falling in line with expectations at 2.1%. Now as gold prices consolidate, traders may continue to watch key technical levels to determine the direction of the commodities next breakout.
Technically traders should note that gold prices are forming an inside bar, with prices failing to breakout to a new high or low for today’s session.
This means traders may use Tuesday’s daily bar as a reference for values of support and resistance. Bullish daily breakouts may be planned above Tuesday’s high at $1,218.90, while bearish breakouts may be signalled beneath the low at $1,202.85.
Intraday, gold prices continue to range after testing support at today’s S3 pivot at a price of $1,211.96. If prices fail to breach this value of support, gold may continue to bounce towards key points of resistance. Today’s R3 pivot is displayed below at $1,220.73.
In the event that gold prices do fall further, bearish breakouts for the metal may be identified intraday beneath the S4 pivot at $1,207.53. An intraday bearish breakout should be seen as significant, as it would be just the first attempted bearish breakout in the last five trading days, Nasdaq reports.
