Gold $1,791, US inflation to test XAU/USD bulls
Gold price regains upside momentum after posting the biggest daily fall in a week. US Dollar retreat, mixed concerns surrounding CPI enables XAU/USD buyers to remain hopeful. Hawkish Fed bets, multiple hurdles to the north challenge gold buyers ahead of US CPI.
Gold price (XAU/USD) grinds higher as bulls struggle to retake control amid a cautious mood ahead of the US Consumer Price Index (CPI) on early Tuesday. That said, the yellow metal’s latest run-up to $1,785 remains elusive as our technical confluence indicator shows that the quote is yet to cross the key hurdles.
It’s worth noting that the mixed precursors for the US inflation joined cautious optimism surrounding China, as well as sluggish Treasury bond yields to underpin the gold price recovery. Also, likely to have favoured the XAU/USD rebound is the market’s inaction that allows traders to consolidate the biggest daily fall in a week.
That said, the US CPI for November, expected 7.3% YoY, versus 7.7% prior figure, will be crucial for intraday gold traders. It should be noted that the CPI ex Food & Energy appears to be the key and is expected to be unchanged at 0.3% MoM, which can please the DXY buyers and weigh on XAU/USD should it manage to post the positive surprise.