Gold price has taken a breather after the recent upsurge, preserving most of Wednesday’s gains. XAU/USD’s further upside hinges on all-important US inflation, FXStreet’s Dhwani Mehta reports.
US inflation rate to exceed 7% YoY, boost aggressive Fed’s tightening bets
“The US annualized Consumer Price Index (CPI) is seen higher at 7.3% In January vs. 7.0% booked previously. A 40-year high inflation rate in America will likely compel the Fed to deliver aggressive and faster rate increases.”
“A fresh upswing towards the $1,840 round figure could be in the offing on successful clearance of Wednesday’s high at $1,836. Further up, a test of the $1,850 psychological level remains in play.”
“A big beat on the US CPI reading could trigger a pullback in gold price towards the previous day’s low of $1,825, below which the 21-DMA at $1,820 will be challenged. A sharp drop towards the 50- and 200-DMAs crossover around $1,807 will be witnessed if the selling pressure intensifies.”
See – Gold Price Forecast: XAU/USD to break under $1,745 and start a sustained downtrend in July – TDS
