- The bias is bearish as long as it stays below the upper median line.
- A new lower low activates more declines.
- The US CPI should be decisive tomorrow.
The current price of gold stands at $1,938 as of the latest update. In the short term, it appears uncertain following a significant recent drop. The minimal change can be attributed to the Dollar Index moving sideways. The overall trend remains bearish, suggesting further declines are likely.
–Are you interested to learn more about MT5 brokers? Check our detailed guide-
Despite a worse-than-expected US Prelim UoM Consumer Sentiment, which dropped from 63.8 to 60.4, the price of gold has shown resilience. The yellow metal has maintained its downward trend, even in light of the unfavorable sentiment data.
Looking ahead, the XAU/USD may continue to trade within a range until the release of US inflation data. Tomorrow’s fundamentals are expected to influence the rate, potentially leading to increased volatility.
Notably, the Consumer Price Index (CPI) month-over-month is anticipated to show a 0.1% growth in October, compared to a 0.4% growth in September. The year-over-year CPI is projected to register a 3.3% growth, a decrease from the 3.7% growth in the previous period. Additionally, Core CPI is expected to announce a 0.3% growth.
These upcoming events are considered high-impact, and as a result, the XAU/USD may experience significant and abrupt movements in response to the inflation figures publication.