Gold, Silver, AUD/USD Technical Analysis After the CPI Release

Gold (XAU) market rebounds higher following the US Consumer Price Index (CPI) release. The US CPI rose by 0.2% in September compared to August. Moreover, the core CPI, which excludes energy and food, increased by 0.3%. This data does not suggest an imminent interest rate cut by the Federal Reserve in its next meeting. Gold prices closed with a positive gain for the first time in six days.

Similarly, the silver (XAG) market reacted positively to the CPI data, closing the day higher at $31.16. The strong price action following the CPI release indicates that gold and silver may continue to rise in the coming days. Today’s Producer Price Index (PPI) release will further influence the market. However, much of the movement depends on geopolitical uncertainties. These uncertainties have been the major driver of the gold market in 2024.

On the other hand, the AUD/USD also produced a key reversal after consistent pressure. With the US dollar surging above a key resistance area, the AUD/USD has been attempting to drop. The prices have fallen below long-term support levels. Additionally, Australia’s consumer inflation expectations decelerated to 4% in October. The lower inflation expectations may reduce the pressure on the Reserve Bank of Australia (RBA) to raise interest rates. These expectations could potentially weaken the AUD/USD further. However, if gold continues to surge from record levels, AUDUSD will gain positive traction.

Gold (XAU) Technical Analysis

Gold Daily Chart – Ascending Channel

This price correction has taken the prices to the red ascending channel support at $2,600 before the CPI release. The price found support at this level after the CPI release and rebounded higher. As long as the price remains above the 50 and 200 SMAs, the overall trend remains bullish.

The black-dotted trendline at $2,580 serves as solid support. Additionally, the RSI holding at the 50 midline indicates positive movements in the gold market. The positive momentum after the CPI release indicates upward momentum.

Gold 4-Hour Chart – 75 Days Channel in Gold

The 4-hour gold chart shows that the price remains within a 75-day ascending channel. The drop before the CPI release tested this ascending channel, and the price is getting positive traction. A daily close above $2,640 will likely initiate the next move upward. The target for this ascending channel is set at $2,720.

Silver (XAG) Technical Analysis

Silver Daily Chart – Key Reversal within Bullish Trend

The RSI on daily chart is reversing from mid level following the CPI release. This highlighted the ongoing strength in the silver market. An inverted head and shoulders pattern provides foundational support. A break above $32.50 will trigger the next upward move. Silver must close above $31.30 on the daily chart to confirm the next bullish momentum.

Silver 4-Hour Chart –Bullish Continuation within Ascending Channel

The price remains within the ascending channel on 4-hour chart. The strong support lies at $30.20 and $29.20. A triangle pattern within the ascending channel was broken to the upside following the CPI release. This breakout signals short-term strength in the silver market.

AUD/USD Technical Analysis

AUD/USD Daily – Key Reversal

The weakness in the gold market has added to the bearish pressure on AUD/USD. The pair has dropped consistently for the past five days. However, the positive key reversal after the release of CPI indicates a positive momentum in the short term. If the gold market gains momentum, AUDUSD may likely find support.

AUD/USD 4-Hour Chart – Short Term Consolidation

The ascending channel on the 4-hour chart was broken to the downside, and the price declined towards $0.66. Since the RSI has approached the oversold region, AUD/USD may see a short-term rebound.