Gold Steady at $1850, Quick Daily Outlook
Skerdian Meta • 1 min read
On Thursday, gold is consolidating in a narrow trading range of 1,866 to 1,850. Spot gold has recovered from a three-month low of $1,831.98 per troy ounce and is now trading above the 1,850 level. The US dollar rose after the latest inflation figures were released, with the annual Consumer Price Index printing at 8.3 percent, higher than the 8.1 percent predicted.
The monthly increase was 0.3 percent, versus the expected 0.2 percent. Finally, the annual core CPI came in at 6.2 percent, slightly lower than the previous 6.5 percent but higher than the 6 percent expected. Investors were hoping to confirm that inflation had peaked, but such figures point to a long battle to control price pressures.
The news fueled risk aversion, sending stocks plummeting and the dollar surging. However, Wall Street recovered from its intraday lows, allowing the XAU/USD to turn positive. Meanwhile, US government bond yields rose amid concerns about persistently high inflation but fell back during US trading hours. The 10-year Treasury note yield reached an intraday high of 3.07 percent before falling to 2.95 percent.
Gold Technical Outlook
GOLD price is currently testing the key resistance level of 1850.00, which calls for caution in the coming trading session, as breaching this level will end the expected negative scenario for today and push the price to rise, whereas the price needs to consolidate below the mentioned resistance to continue the bearish trend, which targets 1820.00 and 1780.25 levels as the next main stations.
Today’s trading range is expected to be between 1810.00 support and 1855.00 resistance.