Gold consolidates the heaviest losses in six weeks, fades consolidative bounce of late. Market’s struggle for clear direction after US CPI challenged Fed, US stimulus. Wall Street benchmarks dropped over 2.0%, down for third day, but S&P 500 Futures prints 0.10% gains afterward. Geopolitical woes, US data can entertain gold traders amid a light calendar. Gold drops back to $1,814.75, following the biggest daily losses since March-end, during Thursday’s Asian session. In doing so, the gold traders fail to keep the late Wednesday’s corrective pullback from $1,813.36 as markets haven’t forgone the reflation fears propelled by the previous day’s US Consumer Price Index (CPI) data. US CPI is a challenge to both, Fed and Biden”¦ With the highest annual US inflation since 2008, double the Federal Reserve’s (Fed) 2.0% target, global markets reaffirm the fears that the easy money has a limited future going forward. The same triggered a risk-off mood and backed the US dollar index (DXY) run-up, not to forget dragging down the Gold prices on Wednesday. Following the data, Fed’s Vice Chair Richard Clarida and Atlanta Federal Reserve President Raphael Bostic tried to placate bears but failed. Also, CNN broke the news of a leading Democratic economist Larry Summers warning the White House on the ‘overheating’ issue, which in turn tests the latest mildly bid market mood and recalls the gold sellers. Not only the reflation fears but the ongoing tussles between Israel and Palestine also weigh on the trading sentiment and gold. In this regard, Reuters came out with a piece of news citing the US sending an envoy to placate conditions in the Middle East after Israel killed Hamas commander. Against this backdrop, Wall Street benchmarks dropped around 2.0 each, marking the third day of losses on Wednesday. Further, the US 10-year Treasury yields jumped the most in two months. However, S&P 500 Futures print mild gains amid a light calendar in Asia. Looking forward, gold traders should wait for more clues that challenge the easy money policies. In doing so, today’s US Jobless Claims and Producer Price Index, followed by Friday’s US Retail Sales, will be the key as any further heating of data will disappoint the Fed more, backing the gold sellers. Technical analysis Having justified the early-week pullback from 200-day SMA on Wednesday, gold’s latest corrective pullback battles 50% Fibonacci retracement of January-March downside, around $1,820. Given the downward sloping Momentum line, coupled with the bearish fundamental, gold sellers are likely to keep the reins. Though, lows marked during late April and early May offer immediate support to gold prices surrounding the $1,800 threshold, below the $1,813 trigger for the fresh downside. It should, however, be noted that the uptrend can’t be ruled out unless the gold buyers defend an ascending support line from March 31, near $1,793. Meanwhile, a clear break above the 200-day SMA level near $1,848 needs validation from 61.8% Fibonacci retracement figures close to $1,851-52 before challenging gold’s late January tops near $1,875. Gold daily chart Trend: Further weakness expected FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street Expert score 5 Etoro - Best For Beginner & Experts0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 5 Read Review Open My Free Account Your capital is at risk. FXStreet News share Read Next Uniswap price sharply reverses while Buterin proposes UNI as an oracle token FX Street 5 months Gold consolidates the heaviest losses in six weeks, fades consolidative bounce of late. Market's struggle for clear direction after US CPI challenged Fed, US stimulus. Wall Street benchmarks dropped over 2.0%, down for third day, but S&P 500 Futures prints 0.10% gains afterward. Geopolitical woes, US data can entertain gold traders amid a light calendar. Gold drops back to $1,814.75, following the biggest daily losses since March-end, during Thursday's Asian session. In doing so, the gold traders fail to keep the late Wednesday's corrective pullback from $1,813.36 as markets haven't forgone the reflation fears propelled by the previous day's US… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.