Gold Price Forecast: XAU/USD trades lackluster despite gloomy market mood, DXY below 104.00

Gold price (XAU/USD) is in the doldrums despite mounting tensions in the global markets on galloping inflationary pressures. The precious metal is behaving depressed and is auctioning in an extremely tight range of $1,815.40-1,817.42 in the Asian session. The disclosure of the inflation data by Europe and the UK on Wednesday created havoc in the FX domain. The annualized Consumer Price Index (CPI) figures by the Eurozone and the UK landed at 7.5% and 9% respectively. It looks like the sky is the limit for the inflation figures.

Advancing price pressures are hurting the global growth forecasts and the expectations of the same forced the market participants to dump equities worldwide. Global sell-off in the equities heightened the appeal for the safe-haven assets, however, the gold prices failed to find any meaningful bids and are continuously displaying a lackluster performance.

Meanwhile, the US dollar index (DXY) is oscillating below the round level resistance of 104.00 in the Asian session. A bull rally in the DXY looks far from over and the asset may get empowered with intensive buying interest.

Gold technical analysis

On a four-hour scale, the 50-period Exponential Moving Average (EMA) at $1,833.47 is acting as a major barricade for the counter. A 40.00-60.00 range oscillation from the Relative Strength Index (RSI) (14) is advocating for a directionless move in the counter. The precious metal is expected to consolidate in a range of $1,807.72-1,836.45. The downward sloping trendline placed from April 18 high at $1,998.43 will act as major resistance for the asset.

Gold four-hour chart