Gold Price Forecast: XAU/USD consolidates Tuesday’s rebound ahead of key US inflation
|Gold managed to close in the positive territory on Tuesday and holds above $1,760 in the early European session on Wednesday. XAU/USD awaits US inflation for the next big move after recapturing the 21-Daily Moving Average (DMA) at $1758.
See – US CPI Preview: Forecasts from nine major banks, a number of factors are pushing inflation higher
Hotter US CPI to further fan the Fed’s tapering and earlier-than-anticipated rate hike expectations
“The annualized US Consumer Price Index (CPI) is seen steady at 5.3% in September while the core figure is also likely to stay unchanged at 4%. Stronger-than-expected reading is expected to cement the Fed’s tapering for November. “
“The September Fed meeting’s minutes will also shed light on the central bank’s next policy move, impacting the dollar and gold valuations.”
“Should Tuesday’s upbeat momentum extend, then gold price could look to retest the downward-sloping 50-DMA at $1776. The next crucial level for gold bulls is seen at the mildly bearish 200-DMA at $1797.”
“On the downside, the 21-DMA resistance turned support now at $1758 will emerge as a fierce cap, below which the $1750 demand area will be back into play. Further south, the falling trendline support at $1741 will be on the sellers’ radars. On a sustained break below the latter, all eyes will be on the multi-week troughs of $1722.”
See – Gold Price Forecast: XAU/USD to sink towards $1565/60 on a break below $1691/77 – Credit Suisse
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.