Gold Rises on USD Weakness Ahead of Key US Inflation Data
Due to a weakening US dollar and a decrease in US Treasury yields, the price of GOLD found support and increased by 0.30% in the late New York trading session on Monday. The precious metal, trading at $1944.95, recovered from a daily trough of $1928.10.
In the United States, a light economic calendar shifted focus towards the impending Consumer Price Index (CPI) release. A New York Fed survey indicated a decline in short-term inflation expectations, with forecasts suggesting a drop in October’s year-over-year inflation from 3.7% to 3.3%. The core CPI is anticipated to remain steady at 4.1%.
Geopolitical tensions seem contained, as inferred from market reactions, despite ongoing clashes in the Gaza Strip. Nonetheless, any escalation could potentially boost gold’s appeal as a safe-haven asset.
Gold market participants are also gearing up for insights from Federal Reserve officials throughout the week. Although Governor Lisa Cook’s recent remarks lacked policy direction, Tuesday’s agenda features speeches from Fed Vice-Chairman Philip Jefferson, John Williams of the New York Fed, and Lisa Cook once more.
Furthermore, the upcoming Asia-Pacific Economic Cooperation (APEC) summit in San Francisco will see a meeting between U.S. President Joe Biden and Chinese President Xi Jinping, with expectations for discussions on military cooperation.
From a technical standpoint, gold’s price action remains subdued, hovering near the pivotal $1933.30 level, sustaining a bearish outlook that anticipates a descent towards the $1909.80 mark upon a downward breach. Conversely, should gold surpass the $1943.00 resistance, it may challenge the $1962.35 level before resuming its expected decline.
Today’s forecasted trading range is set between $1915.00 as support and $1950.00 as resistance, with the trend predicted to be bearish.
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