Gold Price Forecast: XAUUSD steadies below $1,682 hurdle as DXY eases ahead of US inflation

• Gold price treads water after a downside start to the key week.
• US dollar fails to cheer China-linked risk aversion amid indecision over Fed’s next move.
• US inflation data, Fedspeak will be crucial for near-term XAUUSD directions as pivot talks amplify.

Gold price (XAUUSD) clings to half a percent intraday loss while making rounds to $1,670 heading into Monday’s European session.

In doing so, the bright metal portrays the market’s indecision ahead of the key US Consumer Price Index (CPI) data for October, up for publishing on Friday, amid the recent talks of the Fed’s pivot and mixed US jobs report. It’s worth noting, however, that China-inspired risk-off mood exerts downside pressure on the XAUUSD.

That said, covid fears from China join the dragon nation’s downbeat trade numbers for October to keep the bears hopeful. However, the hopes of more private investment into the world’s second-largest economy and a reduction in the hawkish Fed bets, especially after Friday’s mixed US jobs report for October and mixed Fedspeak, puts a floor under the gold price.

While portraying the mood, the S&P 500 Futures print mild losses while fading the previous day’s rebound from the lowest level in two weeks. That said, the US Treasury yields remain sluggish around the multi-day highs printed the previous day.

It should be noted that the latest chatters surrounding a halt in the global central banks’ rate hike trajectory, backed by the recently easy rate increases from the Bank of Canada (BOC) and the Reserve Bank of Australia (RBA), highlight this week’s US inflation data. Should the actual prints meet the downbeat expectations, the XAUUSD may witness a bit of recovery. However, the virus woes and geopolitical concerns surrounding Russia and China may probe the optimism.

Technical analysis

Gold’s retreat from a three-week-old resistance line, backed by the RSI’s pullback from overbought territory, teases the XAUUSD bears of late.

However, a clear downside break of the 200-SMA, around $1,660 by the press time, appears necessary for the sellers to keep the reins.

Following that, multiple supports near $1,630 and $1,615 could test the metal’s downside move ahead of directing it to the $1,600 threshold.

Meanwhile, successful trading beyond the aforementioned trend line resistance, close to $1,682 at the latest, could aim for the $1,700 round figure ahead of challenging the previous monthly peak near $1,730.

Gold price: Four-hour chart

Trend: Further weakness expected