Gold Price News and Forecast: XAU/USD defends 21-DMA support amid USD rebound, US CPI eyed
|Gold Price Analysis: XAU/USD defends 21-DMA support amid USD rebound, US CPI eyed
Gold (XAU/USD) is challenging the bearish commitments near the critical support at $1731, with all eyes on the US CPI for a fresh direction. That level is the 21-daily moving average (DMA), which has been holding the fort for the past week.
The yellow metal fell nearly $11 on Monday, extending its two days of declines, as the Treasury yields reversed course and edged slightly higher following a good three-year note auction.
Gold is likely to continue consolidating
After a failure to crack any significant topside levels, gold is likely to continue consolidating. Gold is broadly within the recent range, although the market has been trading better on balance. The pullback in the dollar has likely been a key supportive factor along with lean positioning. Central Banks in Europe have been more active in shoring up gold reserves.
Still, the improving US macro backdrop lessens the need for gold and a greater demand for stocks from the investment community as stocks act as competition for gold amid this type of cheery environment.
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