Gold broke support yesterday at 1826.00 and dropped below 1820.00, finding a base around 1819.00, however, Gold soon snapped back above 1826.00 and rallied to 1838.00
This morning we are hovering above the 1826.00/1827.00 support area again. The market appears nervous about the upcoming CPI and the consequences of USD strength emerging on the day.
Technically while 1826.00 holds you can expect a test of 1832.00 resistance and then 1836.00, yesterdays high of 1841.00 seems a bit far, unless US CPI is a disappointment.
However, a break of 1826.00 would open a deeper drop this time below 1820.00 possibly to support at 1816.00/1814.00, even 1808.00.
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