Gold Price Forecast: XAU/USD wavers between two key averages after the CPI blow, awaits US data
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- Gold attempts a bounce as US Treasury yields retreat.
- US dollar’s haven demand remains intact as inflation concerns lurk
- Gold remains at the mercy of USD dynamics, awaits fresh US data.
After witnessing a choppy trend, in the first half of Wednesday’s trading, Gold (XAU/USD) tumbled to fresh three-day lows of $1813 after a big beat on the US inflation data jolted the dollar higher towards 91.00 against its main competitors. A bigger-than-expected jump in the US CPI data intensified concerns over mounting inflationary pressures, which spooked the investors and bolstered the dollar’s safe-haven appeal. The rally in the US Treasury yields also collaborated with the downside in gold, as speculative interest re-ignited the Fed tightening expectations. However, the sell-off in the US stocks helped limit gold’s downside.
Gold is struggling to extend its bounce so far this Thursday, with the risk-off mood capping the gains, as the US dollar continues to remain the most preferred safe-haven asset. The price of gold, although draws support from a retreat in the US yields, in the wake of reduced demand for riskier assets. The US dollar dynamics will continue to influence the gold price action, as markets look forward to the US Producers Price Index (PPI) and weekly Jobless Claims.
Gold Price Chart - Technical outlook
Gold: Four-hour chart
Despite Wednesday’s pullback from near $1850 levels, the gold price has managed to defend the upward-sloping 50-simple moving average (SMA) support at $1811.
Gold prices need to recapture the 21-SMA at $1832, in order to extend the recovery momentum towards the static resistance around $1845-$1850.
The Relative Strength Index (RSI) has edged higher but remains below the midline, suggesting that the buyers are likely to face a hard time.
A sustained break below the 50-SMA support could expose the $1800 threshold.
- Gold attempts a bounce as US Treasury yields retreat.
- US dollar’s haven demand remains intact as inflation concerns lurk
- Gold remains at the mercy of USD dynamics, awaits fresh US data.
After witnessing a choppy trend, in the first half of Wednesday’s trading, Gold (XAU/USD) tumbled to fresh three-day lows of $1813 after a big beat on the US inflation data jolted the dollar higher towards 91.00 against its main competitors. A bigger-than-expected jump in the US CPI data intensified concerns over mounting inflationary pressures, which spooked the investors and bolstered the dollar’s safe-haven appeal. The rally in the US Treasury yields also collaborated with the downside in gold, as speculative interest re-ignited the Fed tightening expectations. However, the sell-off in the US stocks helped limit gold’s downside.
Gold is struggling to extend its bounce so far this Thursday, with the risk-off mood capping the gains, as the US dollar continues to remain the most preferred safe-haven asset. The price of gold, although draws support from a retreat in the US yields, in the wake of reduced demand for riskier assets. The US dollar dynamics will continue to influence the gold price action, as markets look forward to the US Producers Price Index (PPI) and weekly Jobless Claims.
Gold Price Chart - Technical outlook
Gold: Four-hour chart
Despite Wednesday’s pullback from near $1850 levels, the gold price has managed to defend the upward-sloping 50-simple moving average (SMA) support at $1811.
Gold prices need to recapture the 21-SMA at $1832, in order to extend the recovery momentum towards the static resistance around $1845-$1850.
The Relative Strength Index (RSI) has edged higher but remains below the midline, suggesting that the buyers are likely to face a hard time.
A sustained break below the 50-SMA support could expose the $1800 threshold.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.