Abstract:All Eyes on key levels and US inflation
Gold price is easing from near monthly highs ahead of US inflation. US CPI will shape the Fed rate hike policy and market sentiment. XAU/USD sees healthy barriers on both sides amid a sense of caution.
Gold price eyes immediate cushion around $1,785, bears will then attack the previous days low of $1,783, where the SMA5 one-day aligns. The next support awaits at the Fibonacci 38.2% one week at $1,780.
On the upside, a powerful resistance is pegged near $1,791, the meeting point of the SMA10 four-hour and the previous low four-hour.
Acceptance above the previous weeks high of $1,795 is important to unleashing the further upside towards the $1,800 round figure.
Bulls will then aim for the $1,805 and $1,810 resistance levels, the Bollinger Band one-day Upper, and the pivot point one-day R2 respectively.
The Week Ahead - West Edition
The dollar was up on Tuesday morning in Asia. Meanwhile, the yen traded near a one-month low to the U.S. currency as uncertainty about the omicron COVID-19 variant was largely consigned to the background, and investors’ risk appetite improved.
Gold prices seesawed on Omicron variant news as real rates rose. Testimony from Fed Chair Powell now in focus, may offer support. Technically, prices are testing the mettle of a three-month uptrend
Gold plunges after Biden renominates Powell to Fed Chair. XAU traders eye US inflation data due out this Wednesday. 1800 level key to direction, will bears break below the level?