Gold prices declined as uncertainty surrounding the Federal Reserve's future actions and expectations of higher inflation boosted the dollar and Treasury yields. The market is eagerly awaiting the consumer price index (CPI) reading on Thursday, which is anticipated to reveal persistent inflation. This outlook dampened interest in gold as non-yielding assets became less attractive due to potential interest rate hikes. The recent comments from Fed officials, offering differing views on future rate increases, added to the uncertainty. If yields rise further, it could trigger more selling in gold. Overall, this week's focus on inflation data and potential surprises may impact gold prices in the short term.
Price movement indicators like MACD and RSI are also confirming the bearish trend. Gold might form a support at 1914.38, and as a pivot point might be considered 1938.84, which, if it got reached and surpassed, the next target for the instrument might be 1960.24
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Price movement indicators like MACD and RSI are also confirming the bearish trend. Gold might form a support at 1914.38, and as a pivot point might be considered 1938.84, which, if it got reached and surpassed, the next target for the instrument might be 1960.24
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carries a high level of risk. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and on such sites. Furthermore, one understands that the company carries zero influence over transactions, markets, and trading signals, therefore, cannot be held liable nor guarantee any profits or losses.