Despite the sideways action above $1,900 in the Asian session, GOLD prices are currently managing to remain above this round-level support. Even though Richmond Fed Bank President Tom Barkin’s hawkish comments were met with praise at first, US Treasury yields have slowly gone up. This is a downside that cannot be ignored.

According to the Federal Reserve’s policymakers, the inflation rate for this period has peaked. However, we are still a ways away from reaching the median CPI. Therefore, it is advisable not to reduce interest rates in haste, as it could cause more harm than good.

As assets that are seen as riskier lose value, the market is becoming less predictable. This can be seen from the S&P 500 futures that have been dropping, representing investors’ preference for lower-risk products. Market participants have become more risk-averse, driving demand for US government bonds lower. As a result, 10-year US Treasury yields have risen above 3.54%.

Investors will keep an eye on the US Producer Price Index (December) and monthly retail sales (December) data in the near future. It is vital information to analyze to make wise decisions when investing.

According to analysts, the December producer price index (PPI) is expected to be 6.8%, while the core PPI could decrease to 5.9%. In addition, retail sales data for the month might have grown by 0.1% as opposed to the 0.6% reported previously. A surge in retail sales could increase inflation outlooks, which would benefit the economy.

 GOLD prices are going down and are getting close to $1,900. This downward trend will continue throughout the day, with a final goal of $1,885. It is very important to keep a close eye on the price point because if it breaks, it could start a bearish wave that sends the price down to $1,860, right at the bullish channel’s support line.

On the other hand, breaching $1,920.50 could restart the bullish trend. According to today’s trading forecast, the anticipated range for trading should be between 1885 and 1928, with the former marking support and the latter resistance.

The expected trend for today: Bearish