On a volatile session, gold is about to end the day higher although still faces some bearish pressure.
Gold attempts recovery
After the release of US CPI data gold bottomed at $1,315 the lowest level since August 31. Quickly afterwards bounced to the upside, rising back above $1,320. Recently reached a daily high at $1,330 after the US dollar extended the decline across the board.
The Dollar Index climbed to 92.37 earlier today, the highest in a week, but then, despite the CPI numbers pulled back. The DXY dropped back under 92.00 and it was about to close hovering around 91.85, down 0.25% for the day.
XAU/USD Technical outlook
“The daily chart for spot shows that the commodity fell briefly below a still bullish 20 DMA, to settle well above it, whilst technical indicators bounced from their mid-lines, suggesting that bulls are willing to add on dips”, said Valeria Bednarik, Chief Analyst at FXStreet.
According to her, the 4 hours chart, shows that the price settled above a modestly bearish 20 SMA, whilst technical indicator resumed their advances, maintaining their upward momentum around their mid-lines.
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