Gold Price Forecast: XAU/USD establishes above $1,670 despite mix risk profile, US Inflation eyed

• Gold price has established comfortably above the $1,670.00 hurdle despite mixed market mood.
• The odds of a fourth consecutive 75 bps rate hike by the Fed have soared vigorously.
• The mighty DXY has locked in a chartered territory ahead of the US inflation report.

Gold price (XAU/USD) has shifted its business above $1,670.00 despite the mixed responses from the risk profile. The majority of the assets are displaying a lackluster performance while the precious metal seems in a better position after a rebound from around $1,660.00.

The yellow metal has not been impacted by the accelerating chances for a fourth consecutive 75 basis points (bps) rate hike by the Federal Reserve (Fed) in the first week of November. As per CME FedWatch tool, 84.8% odds are favoring a fourth consecutive 75 bps rate hike by the Fed.

Meanwhile, the US dollar index (DXY) is balancing in a 113.06-113.60 range and is awaiting the release of the US Consumer Price Index (CPI) data for further guidance. The consensus on the inflation report indicates that the headline US CPI will land at 8.1%, lower than the prior release of 8.3% while the core CPI that excludes oil and food prices will accelerate to 6.5% vs. the former print of 6.3%. Thanks to the declining gasoline prices, which have trimmed projections for the headline inflation rate.

Gold technical analysis

Gold price is working hard to sustain itself above the 61.8% Fibonacci retracement (placed from September’s low at $1,618.68 to October 5 high at $1,726.53) at $1,658.60 on an hourly scale. The precious metal is oscillating in a $1,661.85-1,684.05 range. The 20-and 50-period Exponential Moving Averages (EMAs) are on the verge of a bullish crossover of around $1,674.00.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range from the bearish range of 20.00-40.00 and is attempting to cross the 60.00 hurdle.

Gold hourly chart