Gold Price Forecast: XAU/USD needs a daily close above $1,834 to extend the technical breakout

Gold climbed to its strongest level in more than two months at $1,833 on Tuesday before going into a consolidation phase below $1,830 on Wednesday. Will US inflation trigger a sustained move above $1,834 in XAU/USD? Although the yellow metal is off highs, its bullish potential remains intact, in the view of FXStreet’s Dhwani Mehta.

US inflation eyed for hints on the timing of the Fed rate hike

“US inflation showdown is eagerly awaited by the markets for any hints on the Fed’s rate hike timing, as well as, its pace of tapering in the coming months. The US CPI is expected to arrive at 5.3% YoY in October vs. 5.4% previous while the core figure is seen steady at 4% in the reported period.”

“Gold bulls need a daily closing above the $1,834 barrier to unleash the further upside. The next stop for gold buyers is seen at the $1,840 round number, above which the June 16 high of $1,853 could likely be tested.”

“Should the bears manage to defend the September tops, the further retracement towards Tuesday’s low of $1819 could be in the offing. Further south, symmetrical triangle resistance-turned-support at $1,806 will emerge as a powerful support.”