FX.co ★ Gold cloud rejection after CPI announcement.

Gold price is trading around $1,660. Price was inside the Kumo (cloud) when the US CPI numbers were announced. Higher than anticipated inflation has lead the market prices to get rejected with increased chances of breaking to fresh new lows relative to the previous days. Gold price remains vulnerable to more downside. Price is trading below the tenkan-sen (Red line indicator) and below the Kumo. Trend remains bearish. Price is about to break below the recent low of $1,660. Gold is vulnerable to a move towards $1,640 and lower. Resistance is at $1,672 and the lower cloud boundary. Bulls need to push price back inside the cloud in order to change trend to neutral. Until then we remain bearish.