Gold Price Forecast: XAU/USD faces barricades around $1,770 ahead of US inflation expectations data
|- Gold price has sensed supply near the critical hurdle of $1,770.00.
- Fresh evidence of a rebound in inflation has propelled US Dollar’s upside above 105.60.
- The Fed is expected to provide a higher peak for interest rates in its December monetary policy meeting.
Gold price (XAU/USD) has sensed selling interest around the immediate hurdle of $1,770.00 in the Asian session. The precious metal is facing the heat as the US Dollar Index (DXY) has extended its upside journey above a four-day high at 105.60.
S&P500 futures are majorly lackluster after a sell-off consecutively for the second trading session, portraying a risk-averse approach from investors for the time being. Meanwhile, the 10-year US Treasury yields have recovered some of their losses and have reached 3.56% at the press time.
Fresh evidence of a rebound in inflation from strength shown by the United States economy through services and labor demand in November has turned the market mood sour. This has triggered the risk of higher interest rate peak guidance by the Federal Reserve (Fed) in its monetary policy meeting next week.
But before that, five-year consumer inflation expectations have hogged the limelight. Long-term inflation expectations are still anchored as inflation has shown signs of a slowdown in the past. Earlier, the forward-inflation data landed at 3%.
Gold technical analysis
On an hourly scale, the Gold price has slipped below the upward-sloping trendline placed from November 3 low at $1,616.69. The precious metal is also playing with the 200-period Exponential Moving Average below $1,770.00, which indicates that the long-term trend is not solid anymore.
Also, the Relative Strength Index (RSI) (14) is looking to slip inside the bearish range of 20.00-40.00.
Gold hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.