Gold Price Forecast: XAU/USD to see a daily close below the 200-DMA at $1,836 on hot US CPI
|Gold Price is meandering near three-month lows. XAU/USD eyes US inflation and daily close below 200-Daily Moving Average (DMA) at $1,836, FXStreet’s Dhwani Mehta reports.
Signs of inflation peaking in the US to save the day for gold bulls
“US Consumer Price Index (CPI) data for April is seen easing to 8.1% YoY in April vs. 8.5% booked in March. The core CPI is also expected to soften, on an annualized basis, to 6%. Any signs of inflation peaking in the US economy are likely to temper Fed’s hawkish expectations, which could save the day for gold bulls. On the other hand, hotter than expected US inflation readings will push for aggressive Fed rate hikes, supporting the case for a 75 bps June lift-off at gold’s expense.”
“Sellers need a daily closing below the 200-DMA at $1,836 to extend the sell-off towards the February 10 lows of $1,822. The next key support is seen at the $1,800 round figure, below which the February lows at $1,769 will be in focus.”
“If gold bulls manage to defend the 200-DMA on a daily closing basis, then a rebound towards the previous week low of $1,850 will be inevitable. Further up, gold buyers will aim for Tuesday’s high of $1,865 on their way to the $1,900 mark.”
See – US CPI Preview: Forecasts from 12 major banks, the first decelerating print in a long time
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.