1.13 US inflation fell back and interest rate hikes were expected to slow down, driving up gold prices

Gold rallied sharply on Thursday. Before the opening of the US market, the price of gold broke through the resistance suppression near $1885 and fluctuated in the range of $1885 to $1890. After the opening of the US market, the price of gold fluctuated violently. First, it plunged rapidly in the short term, refreshed the intraday low of $1873, and then rose rapidly upward. It refreshed the recent eight-month high to $1901, and then gradually fluctuated and fell, reaching a low of $1879, and then stabilized and rose to a high of $1899. Finally, gold remained in the range of $1893 to $1900, and closed at $1896. After the opening of the market on Friday, gold rose slightly and temporarily traded near $1897.

The current overall market environment is favorable for gold bulls, including geopolitical tensions, the European energy crisis, and the expectation of economic recession, all of which support the price of gold. In addition, inflation in the United States continues to slow down. After the Federal Reserve slowed down the pace of interest rate hikes for the first time in December last year, the market is betting that the Federal Reserve will further slow down the pace of interest rate hikes and may cut interest rates in the second half of this year, which dragged down the dollar and further promoted the price of gold.

In terms of news, the US December non-quarterly adjusted CPI annual rate recorded 6.5%, in line with market expectations, a significant decrease from the previous value of 7.1%, December core CPI monthly rate recorded 0.3%, the data rose moderately, further proof that price pressure is easing, and for the Federal Reserve to slow down the pace of interest rate hikes next time provides space, December quarterly adjusted CPI monthly rate recorded -0.1%, is the first time in the last three years recorded negative, December non-quarterly core CPI annual rate recorded 5.7%, creating the smallest growth in recent years. After the release of CPI data, the market continued to bet that the Federal Reserve will slow down interest rate hikes in February to 25 basis points, the dollar fell to refresh the recent one and a half year low, driving gold rallied.

In our article on Thursday, "Gold is vigilant against rising and falling back, and the overall direction is dominated by many parties." We suggest that everyone continue to fall back and do more, and give two maximum supports of 1870 and 1865 US dollars. The lowest price of gold fell to 1873 US dollars during the session, and the short-term resistance of 1886 US dollars was given above. At the same time, we remind everyone that breaking through 1886 US dollars has the opportunity to test the integer position of 1900 US dollars, and the gold price rose as high as 1901 US dollars during the session. During the recent rise in gold prices, there have been many rallies and falls, but eventually they have stabilized and risen, and continue to test new highs, indicating that many parties are more strong.

On the gold daily chart, the price of gold sticks to the middle track support of the Bollinger Band, running above the rising trend line, maintaining a volatile rise, and has continued to test new highs in the past two weeks. The rally has accelerated. The Bollinger Band runs upward, and the moving average indicator bulls diverge, and gold is obviously in the main rising wave market. On the accompanying indicators, the MACD indicator gold fork diverges, and the KDJ and RSI indicators gold fork rises, showing that multiple parties are dominant, but the KDJ indicator and the CCI indicator are overbought, and the RSI indicator begins to enter the overbought area, indicating that there is a correction demand for gold prices in the short term, and gold may experience high volatility or short-term decline.

Gold Intraday Reference: Gold is in an overbought state, and there is a demand for correction in the short term. It is necessary to be vigilant against the situation of rising and falling. The overall direction is still dominated by many parties. In operation, it is recommended to continue to fall back and do more. Below, pay attention to the support of $1890 and $1885. Above, pay attention to the resistance of the previous highs of $1810 and $1820.