Gold Price Analysis: XAU/USD remains confined in a range, moves little post-US CPI


  • Gold struggled to capitalize on the early uptick amid renewed USD buying interest.
  • The USD held on to its gains following the release of US consumer inflation figures.
  • A cautious mood in the equity markets helped limit losses for the safe-haven metal.

Gold struggled for a firm direction and remained confined in a range, around the $1855 region through the early North American session.

A combination of diverging factors failed to assist the commodity to build on the previous day's positive move and led to a subdued/range-bound price action, below 50-day SMA. The early uptick once again ran out of the steam near the $1862-63 region, ahead of the 50-day SMA hurdle, though the pullback lacked any strong follow-through selling.

The US dollar regained positive traction amid a modest bounce in the US Treasury bond yields, which, in turn, was seen as one of the key factors that capped gains for the dollar-denominated commodity. In fact, the yield on the benchmark 10-year US government bond stalled its retracement slide from a 10-month high hit on Tuesday and helped revive the USD demand.

Meanwhile, the greenback has a rather muted reaction and moved little following the release of the latest consumer inflation figures. The headline CPI matched consensus estimates and came in to show a 0.4% MoM rise in December. The yearly rate increased by 1.4% as against 1.3% anticipated, though did little to impress the USD bulls.

That said, indications of a cautious opening in the US equity markets extended some support to the safe-haven XAU/USD and helped limit any deeper losses, at least for the time being. This makes it prudent to wait for a sustained move in either direction before positioning for any meaningful intraday trading opportunities.

Technical levels to watch

XAU/USD

Overview
Today last price 1859.06
Today Daily Change 3.14
Today Daily Change % 0.17
Today daily open 1855.92
 
Trends
Daily SMA20 1885.9
Daily SMA50 1866.92
Daily SMA100 1890.73
Daily SMA200 1841.42
 
Levels
Previous Daily High 1863.83
Previous Daily Low 1836.74
Previous Weekly High 1959.42
Previous Weekly Low 1828.27
Previous Monthly High 1906.87
Previous Monthly Low 1775.52
Daily Fibonacci 38.2% 1853.48
Daily Fibonacci 61.8% 1847.09
Daily Pivot Point S1 1840.5
Daily Pivot Point S2 1825.07
Daily Pivot Point S3 1813.41
Daily Pivot Point R1 1867.59
Daily Pivot Point R2 1879.25
Daily Pivot Point R3 1894.68

 

 

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