Gold Price Forecast: XAUUSD needs a soft US CPI report to surpass $1,800

Gold price clings to the critical downward-sloping 50-Daily Moving Average (DMA) at $1,787 amid pre-US inflation cautious trading. XAUUSD buyers need softer US CPI for a big break above the $1,800 mark, FXStreet’s Dhwani Mehta reports.

Bullion traders to remain non-committal below the $1,800 mark

“A softer US inflation reading could offer the much-needed impetus to gold bulls for crossing the $1,800 threshold, as it would pour cold water on super-sized Fed rate hike expectations.”

“A failure to sustain above the 50 DMA at $1,787 will open up a renewed downside towards the previous day’s low of $1,771, below which the $1,765 demand area will come into play. The August 3 high of $1,754 and the $1,750 psychological level will be on sellers’ radars.”

“Buyers need acceptance above the $1,800 mark to continue with its recovery momentum. Bulls will then guard the July 5 high at $1,812 should the upbeat momentum pick up steam.”