Gold Price Forecast: XAU/USD consolidates its gains around $1,960, Chinese, US data eyed


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  • Gold price remains sidelined as bulls take a breather around $1,960.
  • The US headline Consumer Price Index (CPI) grew 3.2% YoY vs. 3.7% prior, below the market estimation.
  • The escalating geopolitical conflicts in the Middle East could boost the demand for gold.
  • The Chinese Industrial Production and Retail Sales will be closely watched ahead of the US data.

Gold price (XAU/USD) consolidates its recent gains after reaching $1,971 during the early Asian session on Wednesday. The weaker-than-expected US inflation and a decline in US Treasury yields boost precious metal demand. Also, the rising geopolitical tensions will fuel the safe-haven flows. The gold price currently trades near $1,960, losing 0.10% on the day.

Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, falls to the 104.00 area, the lowest level since early September. The US Treasury bond yields dropped sharply, with the US 10-year yield falling from 4.60% to 4.45%. Gold benefits from this development and bounces off the $1,940 low.

The US Consumer Price Index (CPI) is probably alleviating the Fed's pressure to further tighten monetary policy this year. This, in turn, triggers some follow-through buying in the precious metal. That being said, the US CPI came in worse than expected, growing 3.2% YoY versus 3.7% prior, below the market consensus of 3.3%. Meanwhile, the core measure rose by 0.2% MoM and 4.0% YoY.

The Gaza Strip has been under a total Israeli blockade since Hamas launched an attack on Israel on October 7. The rising geopolitical tensions in the Middle East could trigger the demand for gold.

Gold traders will monitor the Chinese Industrial Production and Retail Sales for October, due on Wednesday. The weaker-than-expected data could fuel the concern of economic slowdown in the world’s second economy. Later in the day, the US Retail Sales and Producer Price Index (PPI) will be released.

 

XAU/USD

Overview
Today last price 1962.07
Today Daily Change -1.79
Today Daily Change % -0.09
Today daily open 1963.86
 
Trends
Daily SMA20 1972.89
Daily SMA50 1924.07
Daily SMA100 1927.94
Daily SMA200 1935.58
 
Levels
Previous Daily High 1971.02
Previous Daily Low 1943.82
Previous Weekly High 1993.18
Previous Weekly Low 1933.04
Previous Monthly High 2009.49
Previous Monthly Low 1810.51
Daily Fibonacci 38.2% 1960.63
Daily Fibonacci 61.8% 1954.21
Daily Pivot Point S1 1948.11
Daily Pivot Point S2 1932.37
Daily Pivot Point S3 1920.91
Daily Pivot Point R1 1975.31
Daily Pivot Point R2 1986.77
Daily Pivot Point R3 2002.51

 





 

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