Gold even rose above $2,700 in the wake of higher US inflation, as traders widely expect inflation to accelerate further after new rates are introduced and sentiment remains very strong overall. Weaker-than-expected US retail sales also provided some support to the metal.
There were two failed tests of the area around $2,720 in late November and mid-December 2024, so this looks like quite strong resistance that could send the price pausing, if not lower, especially in the current overbought conditions. If it manages to break through, there will be no other obvious resistance before the latest all-time high around $2,790.
The shrinking value area of the 20, 50 and 100 SMAs is important dynamic support, while the 100% Fibonacci expansion around $2,545 is even more important now that the 200 SMA is also in this area. However, another failed test of $2,720 seems likely to lead to a retracement or consolidation rather than an immediate reversal to a downtrend. With no big data coming out of the US next week, traders will likely focus on politics and especially on firm plans, if any, for tariffs.