Gold Price Forecast: XAU/USD gathers pace for the next leg higher

FXStreet Insights Team FXStreet

Gold price has taken a breather after the recent upsurge, preserving most of Wednesday’s gains. XAU/USD’s further upside hinges on all-important US inflation, FXStreet’s Dhwani Mehta reports.

US inflation rate to exceed 7% YoY, boost aggressive Fed’s tightening bets

“The US annualized Consumer Price Index (CPI) is seen higher at 7.3% In January vs. 7.0% booked previously. A 40-year high inflation rate in America will likely compel the Fed to deliver aggressive and faster rate increases.”

“A fresh upswing towards the $1,840 round figure could be in the offing on successful clearance of Wednesday’s high at $1,836. Further up, a test of the $1,850 psychological level remains in play.”

“A big beat on the US CPI reading could trigger a pullback in gold price towards the previous day’s low of $1,825, below which the 21-DMA at $1,820 will be challenged. A sharp drop towards the 50- and 200-DMAs crossover around $1,807 will be witnessed if the selling pressure intensifies.”

See – Gold Price Forecast: XAU/USD to break under $1,745 and start a sustained downtrend in July – TDS

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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