Gold Price Turns Bearish Below $2,030, Eying BOE Meeting

• XAU/USD signaled exhausted buyers.
• Taking out the weekly pivot point activates more declines.
• The BOE and the US data should bring high action today.

The gold price is trading in the red, around $2,025 when writing. Yesterday, it registered sharp movements in both directions after the US inflation data. The bias remains bullish, so further growth is still in the cards.

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XAU/USD rallied in the last trading session, reaching a weekly high of around $2,048. The United States Consumer Price Index came in line with expectations. CPI y/y reported worse than expected data, while Core CPI beat expectations.

Today, the BOE represents a high-impact event. The Official Bank Rate is expected to be raised from 4.25% to 4.50%. The BOE Gov Bailey Speaks, Monetary Policy Summary, and BOE Monetary Policy Report should bring high action.

Furthermore, the US PPI may report a 0.3% growth compared to the 0.5% drop in the previous reporting period. Core PPI may register a 0.2% growth, while Unemployment Claims are forecasted to jump from 242K to 245K in the last week. The US Prelim UoM Consumer Sentiment and the UK GDP should move the price tomorrow.

Gold price technical analysis: Up channel in play

The XAU/USD rebounded within an up channel. However, it failed to retest the upper median line (UML), signaling exhausted buyers. Now, it challenges the uptrend line, the channel’s support. As long as it stays above this dynamic support, the yellow metal could try to come back higher.

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Technically, the weekly pivot point of 2,020 represents static support. Escaping from the channel’s pattern should bring new opportunities. Still, it remains to see how it reacts after reaching the pivot point.

After its current drop, we cannot exclude a temporary rebound. It could retest the broken uptrend line. A valid breakdown below the weekly pivot point of 2,020 activates more declines.

From the technical point of view, as long as it stays below the upper median line (UML), the price could be attracted by the median line (ML).

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