cryptocoin.com As we reported, gold prices fell solidly on Thursday after a more hawkish Federal Reserve meeting and some upbeat US economic data.
Critical technical levels for gold price
The US four-quarter gross domestic product report released today showed a 6.9% increase against expectations for a 5.5% increase. Personal consumption expenditures (PCE), a closely watched inflation indicator, came in at a warm 6.5% annual rate in the fourth quarter. US weekly jobless claims data were also upbeat. The data helped the US dollar index (DXY) recover, pushing gold markets to daily lows.
The market is still tense Thursday morning after the Fed’s Open Market Committee (FOMC) meeting concluded on Wednesday afternoon. According to senior analyst Jim Wyckoff, the FOMC statement didn’t move markets much, but it did perceive Fed Chairman Powell as more hawkish than expected at the press conference. Jerome Powell’s comment yesterday that US labor market conditions are consistent with maximum employment means the central bank is resolutely focused on rising inflation. The analyst says this morning’s key personal consumption spending data for the fourth quarter supports the Fed Chairman’s hawkish comments Wednesday afternoon.
Technically, February gold bulls generally have the short-term technical advantage, but are turning bearish late this week. The analyst states that the five-week price rise in the daily bar chart is a bit of a threat, noting the following levels:
The bulls’ next upside price target is to close February futures contracts above the solid resistance at this week’s high at $1,854.20. The bears’ next short-term bearish price target is to push futures prices below solid technical support at $1,800. Initial resistance is seen at today’s high at $1,821.40, followed by $1,833. Initial support is seen at $1,800 followed by $1,790.
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