Gold Price Forecast: XAU/USD accelerates above $1,790 as spotlight shifts to US inflation

Gold price (XAU/USD) has climbed above the critical hurdle of $1,790.00 in the Asian session. The precious metal has witnessed firmer demand as the US Dollar is facing immense heat. Meanwhile, the US Dollar Index (DXY) is hovering around Thursday’s low at 104.70 and is expected to display losses ahead amid a risk appetite theme underpinned by market participants.

S&P500 futures are displaying a subdued performance in Tokyo after snapping a three-day losing streak on Thursday. The 10-year US Treasury yields have witnessed marginal pressure but are still holding at 3.48%.

According to the consensus, the headline PPI in the United States is expected to drop to 7.4% from the prior release of 8.0%. Also, the core PPI is seen lower at 6.0% vs. the former figure of 6.7% on an annual basis. An occurrence of the same is going to cheer the Federal Reserve (Fed) as the economy has managed to incentivize producers to announce a decline in prices of ultimate goods and services due to weaker demand.

New week, the release of the United States inflation data will provide meaningful cues for further guidance. The headline CPI is expected to remain unchanged at 7.7% while the core inflation might inch higher to 6.4%.

Gold price technical analysis

On an hourly scale, Gold price has resumed its upside journey after a Positive Divergence formation. The precious metal is continuously making higher lows while the Relative Strength Index (RSI) (14) formed a lower low, which indicates an oversold oscillator in an uptrend that presents a buying opportunity to the market participants.

The 200-period Exponential Moving Average (EMA) at $1,776.76 has acted as major support for the counter.

Gold hourly chart