Ahead of inflation statistics, gold declines below $2,000.
In advance of significant data releases on inflation from the U.S. and the Eurozone, investors exhibited some caution on Wednesday, which led to a small decline in gold prices.
The market price of XAU/USD is currently trading around $1,965, down 0.48% on the day.
There are no new triggers to spur directional changes, even though financial markets are optimistic and banking fears are still waning.
There is space for some dollar appreciation because the macroeconomic calendar has been light for three days in a row. However, international financial markets have seen significant gains, with U.S. indexes ending the day in the black.
On Thursday, the macroeconomic calendar is anticipated to get started because Germany and Spain will release their March Harmonized Index of Consumer Prices (HICP) preliminary estimates before the Eurozone figure, which will be released on Friday.
Additionally, today will see the release of the final estimate of the US Q4 GDP, which is anticipated to confirm an annualized increase of 2.7%. The Federal Reserve’s favored inflation gauge, the February Core Personal Consumption Expenditures Price Index, will be made public on Friday. It is expected to show an increase in inflation of 4.7% over the previous 12 months.
Technically speaking, the XAU/USD pair is consolidating close to recent highs, with indicators on the daily chart losing momentum but keeping an upward trend.
To aim for March 2022 highs at the $2,070 area, the yellow metal needs to make a clean break above the $2,010 area. The 20-day SMA would be exposed at $1,910 if the $1,930 support level were to disappear. The technical prognosis for the metal would be worsened by a break below the latter.
