Gold Price Forecast: XAU/USD to tick down on strong US CPI report
|Gold is likely to remain inversely correlated with the benchmark 10-year US T-bond yield next week as investors will await the US January Consumer Price Index (CPI) data, which could impact the market odds of a 50 basis points (bps) Fed rate hike in March, FXStreet’s Eren Sengezer reports.
Next week's US CPI data could trigger a big reaction in XAU/USD
“On Thursday, the US Bureau of Labor Statistics will release CPI data. On a yearly basis, the CPI is forecast to rise to 7.2% from 7% in December. A stronger-than-expected reading could ramp up the probability of a 50 bps hike in March and weigh on XAU/USD.”
“In case the price stays above $1,805 (200-day SMA) and starts using this level as support, the next target on the upside is located at $1,820 (20-day SMA, Fibonacci 38.2% retracement of December-February uptrend) before $1,830 (Fibonacci 23.6% retracement).”
“In case $1,805 is confirmed as resistance, gold needs to make a daily close below $1,800 (100-day SMA, Fibonacci 61.8% retracement) to convince bears. In that case, $1,780 (static level) aligns as the next support.”
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.