Gold price stalls the two-day recovery momentum on Tuesday. Acceptance above $1900 is critical for XAU/USD while the focus shifts to US CPI, FXStreet’s Dhwani Mehta briefs.
See – Gold Price Analysis: XAU/USD set to move lower in the near-term – OCBC
US CPI due this week holds the key for the next direction in gold
“This Tuesday, nothing seems to have changed for gold price so far, in terms of the fundamental drivers, as inflation and Fed’s monetary policy expectations continue to influence. Markets eagerly await Thursday’s US CPI data to gauge the inflationary pressures and the Fed’s stance on monetary policy.”
“In the meantime, gold retreats from above $1900 amid a broad-based rebound in the US dollar and falling inflation expectations, which hit a six-week low ahead of the key CPI report.”
“Gold price is teasing a symmetrical triangle breakout, with awaited confirmation on a sustained closing above the falling trendline resistance at $1900. An upside break from the triangle could bring the multi-month tops of $1917 back on the buyers’ radars.”
“To the downside, the confluence of the 21 and 100-SMAs at $1887 is likely to be a tough nut to crack for the bears. Further south, Monday’s low of $1881 could be retested, where the rising trendline support coincides.”
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