Gold Price News and Forecast: XAU/USD saw knee jerk upside in wake of soft US CPI data
Gold Price Analysis: XAU/USD supported above key $1830 area but 200 and 50 DMAs blocking further gains
Spot gold prices were choppy on Wednesday, swinging between a roughly $20 range between the $1835 and $1855 levels, but still managed to close Wednesday’s session with gains of around 0.3%.
Looking at the spot price over a short time horizon, XAU/USD has respected an uptrend from the Monday Asia Pacific session open low at just under $1830.
Gold Price Analysis: XAU/USD erases post-soft US CPI data rally to trade back around $1840
Spot gold prices (XAU/USD) saw a pick-up in volatility in wake of a softer than anticipated US Consumer Price Inflation reading; in the immediate aftermath of the data, XAU/USD rallied from around $1840 to hit highs around $1855, which happened also to coincide with resistance in the form of the 200DMA. In the subsequent hours, these gains were eroded and spot gold is now trading around the $1840 mark again, with modest gains on the day of around 0.2%, mostly as a result of the slightly softer US dollar and slight drop in real yields (US 10-year TIPS yields are down just over 1bps on the day in the mid -1.05s%).
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