Gold Price is meandering near three-month lows. XAU/USD eyes US inflation and daily close below 200-Daily Moving Average (DMA) at $1,836, FXStreet’s Dhwani Mehta reports.
“US Consumer Price Index (CPI) data for April is seen easing to 8.1% YoY in April vs. 8.5% booked in March. The core CPI is also expected to soften, on an annualized basis, to 6%. Any signs of inflation peaking in the US economy are likely to temper Fed’s hawkish expectations, which could save the day for gold bulls. On the other hand, hotter than expected US inflation readings will push for aggressive Fed rate hikes, supporting the case for a 75 bps June lift-off at gold’s expense.”
“Sellers need a daily closing below the 200-DMA at $1,836 to extend the sell-off towards the February 10 lows of $1,822. The next key support is seen at the $1,800 round figure, below which the February lows at $1,769 will be in focus.”
“If gold bulls manage to defend the 200-DMA on a daily closing basis, then a rebound towards the previous week low of $1,850 will be inevitable. Further up, gold buyers will aim for Tuesday’s high of $1,865 on their way to the $1,900 mark.”
See – US CPI Preview: Forecasts from 12 major banks, the first decelerating print in a long time
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