Gold Price Forecast: XAU/USD stabilizes above $1,770 as focus shifts to US Inflation data

Gold price is hovering around $1,775.00 as investors are shifting their focus toward US CPI.
The upbeat labor market data has restored the Fed’s confidence in hiking rates sharply.
A lower consensus for the US CPI may not trim the Fed’s extremely hawkish stance.

Sagar Dua FXStreet

Gold price (XAU/USD) is oscillating in a narrow range of $1,771.70-1,779.76 after a sharp rebound from a downside move below $1,770.00. The precious metal is awaiting the release of the US Inflation data for fresh guidance, which is due on Wednesday.

The gold prices displayed a sheer downside on Friday after the release of the bumper US Nonfarm Payrolls (NFP) data. As per the market consensus, the US job additions were seen at 250k, however, the economic data released at 528k also outperformed the prior release of 372k. Earlier, investors were trimming their expectations for the continuation of exaggerated policy tightening measures by the Federal Reserve (Fed) as the labor data was expected to turn subdued. Now, the Fed would be able to hike rates with much confidence.

Meanwhile, the US dollar index (DXY) is aiming to recapture the critical resistance of 107.00 after an establishment above 106.50. The US Consumer Price Index (CPI) is seen at 8.7% vs. 9.1% reported earlier. A decent slippage in US inflation will provide some relief to US households, which are facing the headwinds of soaring price pressures.

Gold technical analysis

On a four-hour scale, the gold price is declining towards the lower portion of the Rising Channel, which is placed from July 21 low at $1,681.87. While the upper portion is plotted from July 22 high at $1,739.37.

The precious metal has defended the 200-period Exponential Moving Average (EMA) at $1,765.80. Also, the bright metal is holding above the 50-EMA at $1,760.00, which signals the strength of the gold prices.

While, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range, which indicates that the gold bulls are not holding a bullish momentum for a while.

Gold four-hour chart

XAU/USD

Overview
Today last price	1775.78
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1775.78

Trends
Daily SMA20	1736.81
Daily SMA50	1788.98
Daily SMA100	1844.84
Daily SMA200	1841.89

Levels
Previous Daily High	1794.9
Previous Daily Low	1765.07
Previous Weekly High	1794.97
Previous Weekly Low	1754.35
Previous Monthly High	1814.37
Previous Monthly Low	1680.91
Daily Fibonacci 38.2%	1776.47
Daily Fibonacci 61.8%	1783.5
Daily Pivot Point S1	1762.27
Daily Pivot Point S2	1748.75
Daily Pivot Point S3	1732.44
Daily Pivot Point R1	1792.1
Daily Pivot Point R2	1808.41
Daily Pivot Point R3	1821.93

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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