XAU/USD holds in a familiar trading range below $1,800. Investors look forward to the US CPI report for some impetus ahead of the FOMC policy meeting.
Higher inflation could persist for some time
“A stronger US CPI report will reaffirm marked expectations for an imminent Fed taper announcement. This would be enough to trigger a fresh leg up in the US bond yields, which should provide an additional boost to the already stronger greenback. This, in turn, will play a key role in influencing the XAU/USD ahead of the crucial FOMC monetary policy meeting on September 20-21.”
“The $1,785-84 region might continue to protect the immediate downside. A convincing break below will be seen as a fresh trigger for bearish traders and set the stage for a deeper retracement to the $1,750 level.”
“The $1,800-05 area now seems to have emerged as immediate strong resistance and is closely followed by the very important 200-day SMA, around the $1,808 zone. A sustained move beyond might prompt some short-covering move and lift the metal back towards the $1,832-34 supply zone.”
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