RSI divergence teases gold sellers ahead of US inflation, Fed Minutes
Gold price makes rounds to the record top early Wednesday as market players await the all-important US Consumer Price Index (CPI) and Minutes of the latest Federal Reserve (Fed) monetary policy meeting. Apart from the pre-data anxiety, a bearish RSI divergence on the four-hour chart also challenges the XAUUSD buyers. That said, the lower low in the RSI (14) line contrasts with the higher high in the bullion prices to portray the bearish divergence and tease the sellers. However, a week-long bullish trend channel, currently between $2,314 and $2,375, restricts the precious metal’s short-term moves. Even if the prices drop beneath the $2,314 support, the bears need validation from the $2,300 threshold and convergence of the 100-bar Exponential Moving Average (EMA) and a 1.5-month-old rising trend line, close to $2,245-42, to retake control.
Meanwhile, a fresh upside in the Gold price could aim for the stated bullish channel’s top line, around $2,375 at the latest. Following that, the 100% Fibonacci Extension (FE) of the quote’s February-March moves, near $2,398, will precede the $2,400 threshold to lure the XAUUSD buyers. It’s worth noting that the precious metal’s advances past $2,400 won’t hesitate to aim for the $2,500 psychological magnet.
Overall, the Gold buyers are running out of steam ahead of this week’s top-tier data/events.
