Gold Price Forecast: XAU/USD eyeing $1,930 ahead of Wednesday's US CPI print

Gold is seeing a soft retreat as US inflation data looms ahead.
An upbeat US CPI read could send Gold lower.
USD flows to determine the direction of XAU/USD as investors react to market inflation outlook.

Joshua Gibson FXStreet

The XAU/USD is stepping lower in Tuesday trading, testing the $1,910.00 level as investors await US inflation figures on Wednesday’s Consumer Price Index (CPI) data release.

Metals investors will be taking a step back ahead of US inflation figures due tomorrow, and a firming up of the US Dollar (USD) index is taking the yellow metal down a peg, dropping below near-term bottoms and etching in a new low for the month of September.

US CPI figures to drive Gold flows on Wednesday

If US CPI figures come in or above expectations, it could put further downside pressure on Gold. Headline CPI data for the month of August is forecast to come in at 0.6%, a step up from the previous month’s 0.2%. Core CPI (CPI excluding food and energy prices) for the same period is expected to hold steady at 0.2%.

Looking ahead to Thursday, US Retail Sales growth figures are expected to show a slight cooling off. August’s Retail Sales data is expected to print at 0.2%; still a positive number, but a reduced showing from the previous month’s 0.7% growth.

A disappointing showing for economic calendar data could see a firm round of support for the XAU/USD, but increasing economic activity will send the Greenback higher and push Gold another step down.

XAU/USD technical outlook

Gold is slightly lower in the early trading week, down from Monday’s opening prices near $1,920.00, and daily candlesticks are so far getting suppressed by a descending trendline from May’s high peak above $2,050.00. Adding to the resistance cloud gathering above Gold prices, the 100-day Simple Moving Average is descending to $1,950.00, and an inversion of the 50-day Exponential Moving Average sees the EMA building resistance into $1,930.00.

On the short side, support is coming from August’s swing low into $1,890.00, and despite consecutive lower lows on the daily chart, bearish momentum is waning as the fast and slow EMAs on the MACD indicator begin to consolidate.

XAU/USD daily chart

XAU/USD technical levels

XAU/USD

Overview
Today last price	1913.06
Today Daily Change	-9.36
Today Daily Change %	-0.49
Today daily open	1922.42

Trends
Daily SMA20	1916.74
Daily SMA50	1932.22
Daily SMA100	1949.99
Daily SMA200	1919.5

Levels
Previous Daily High	1930.77
Previous Daily Low	1916.64
Previous Weekly High	1946.35
Previous Weekly Low	1915.33
Previous Monthly High	1966.08
Previous Monthly Low	1884.85
Daily Fibonacci 38.2%	1925.37
Daily Fibonacci 61.8%	1922.04
Daily Pivot Point S1	1915.78
Daily Pivot Point S2	1909.15
Daily Pivot Point S3	1901.65
Daily Pivot Point R1	1929.91
Daily Pivot Point R2	1937.41
Daily Pivot Point R3	1944.04

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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