During the Asian session, GOLD is expected to rise and reach around $1,880.00, a key resistance level. The price of the precious metal went up a lot in late New York trading after it had dropped to around $1,867.50 during rangebound trading before US inflation data came out.

S&P500 futures are performing poorly in Asia, but the overall risk profile is favorable. On a larger scale, the 10-year US Treasury bonds’ alpha has lost its recovery boost and is now around 3.55%, even though people are optimistic. Also, the US Dollar Index (DXY) has dropped to about 102.75 as traders expect the Consumer Price Index (CPI) to slow down even more.

According to NBF analysts, headline prices will fall 0.1% MoM, and the year-on-year rate will fall from 7.1% to 6.7%. The food component is expected to remain relatively strong, but lower gasoline prices should have offset this increase. Meanwhile, the Core index may have continued to be supported by growing rent costs, rising 0.3% monthly. This would result in a two-tick drop in the 12-month rate to 5.8%.

From a willingness to take risks to a slowing economy and a lower consensus for the US Consumer Price Index (CPI), none of the factors show that the US Dollar Index will improve after the disaster. If US inflation goes down, the Federal Reserve (Fed) may have to change its estimates for monetary policy in 2023 and beyond.

Stochastic’s bullish signal led to new positive GOLD price trades before today’s opening. We are now waiting for more rises to meet our targets, which start at $1,900 and go up to $1,928.60.  The EMA50 supports the projected advance, which will hold until it breaks through $1,865.

Today’s trading range is likely between $1,865 support and $1,905 resistance.
Today’s projected trend: bullish.