- Gold price is aiming to capture the $1,800 hurdle amid sheer optimism in the market.
- Economists at Danske Bank believe that the risk of persistent inflation has not vanished.
- Wednesday’s Retail Sales data is seen higher at 0.9% despite a decline in inflation.
Gold price (XAUUSD) has climbed above the critical resistance of $1,770.00 in the early Tokyo session. The precious metal has become a prized asset for market participants in the past week after the US October inflation report disclosed easing price pressures. The gold prices are set for further rally towards the crucial resistance of $1,800.00 as a decline in the inflationary pressures is promising that the Federal Reserve (Fed) won’t look for hefty rate hikes in its December monetary policy.
Meanwhile, a decline in the US dollar index (DXY) after plummeting US Consumer Confidence has strengthened the gold’s rally. The sentiment data dropped to 54.7 vs. the projections of 59.5. Going forward, the price action in the US bond market will be keenly watched after an extended weekend.
Contrary to the improved risk appetite due to a decline in the US inflation rate, economists at Danske Bank are of the view that price pressures in the US are set to persist. “While markets have reacted very positively to the October CPI print, we continue to see further risks of more persistent inflation and think it is too early to trade a clear Fed pivot.”
Going forward, Wednesday’s Retail Sales data will remain in the spotlight. The monthly data is seen higher at 0.9% vs. the prior release of 0%. An incline in retail demand despite a monthly decline in price pressures indicates solid retail demand by households.
Gold technical analysis
On a daily scale, the gold price is marching towards the horizontal resistance plotted from the August 10 high at $1,807.93. The Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates that the gold bulls are playing the upside momentum.
Gold daily chart
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: The extension of the rebound remains to be seen
AUD/USD left behind three daily declines in a row, reclaiming the 0.6300 hurdle and beyond on the back of the persistent downside impulse in the US Dollar and despite steady concerns surrounding US tariffs.
EUR/USD: A move to 1.1000 in the offing?
EUR/USD rose for the third straight day, this time reaching five-month highs well north of 1.0900 the figure, bolstered by hopes of a deal around Germany’s spending plans and the heightened weakness around the Greenback.
Gold advances beyond $2,900, bulls gearing up
Gold reverses its direction following Monday's decline and trades above $2,910 on Tuesday. Investors remain worried about the potential economic fallout from US President Trump's tariffs, causing the USD to stay under pressure and supporting XAU/USD.
Dogecoin traders on alert as Trump backs Elon Musk after tariffs triggered $200B Tesla losses
Dogecoin price reached $0.14 on Tuesday, posting 46% losses in the last 10 days. Market reports suggest that fresh developments surrounding United States (US) President Donald Trump and Elon Musk could see DOGE prices stabilize in the days ahead.
Gold advances beyond $2,900, bulls gearing up
Gold reverses its direction following Monday's decline and trades above $2,910 on Tuesday. Investors remain worried about the potential economic fallout from US President Trump's tariffs, causing the USD to stay under pressure and supporting XAU/USD.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.