The gold price has fallen below Wednesday’s low of $1,693.67, putting it on a downward trend. The price of precious GOLD is falling towards $1,690.00 as bears seize control of the rising odds of a major rate hike by the Federal Reserve (Fed).

The higher-than-expected US Consumer Price Index (CPI) announcement on Tuesday masked earlier weariness signals. Despite declining fuel costs, the headline US CPI was 8.3% higher than expected at 8.1%.

The investing world believed that the inflation issue was responding to raising interest rates by the Federal Reserve (Fed) and that a sequence of price pressure declines would allow the Fed to transition to a “neutral” posture sooner. However, an above-expectations announcement of US inflation has demonstrated that the path to neutral policy is still far from complete.

Furthermore, predictions of a full percentage rate hike are now trending. The publication of the US retail sales will be crucial in today’s session. Forecasts for economic data show no indications of an increase in retail demand. This could be due to a drop in consumer confidence in the economy.

Gold Technical Outlook

The gold price managed to meet our first awaited objective at 1690.00 and press negatively on it, strengthening the expectations of extending the bearish trend, highlighting that our next targets began at 1680.00 and continued to 1655.00 after overcoming the previous level.

As a result, the bearish trend scenario will continue valid and active on an intraday and short-term basis, underpinned by the EMA50, with the price likely to achieve temporary rises and touch 1726.60 regions before attempting to collapse again.

Today’s trading range is likely between 1670.00 support and 1705.00 resistance.

Today’s projected trend: Bearish