Gold is awaiting the result of Thursday’s US CPI data and next week’s Fed.
The US dollar is learning some excess flows out of risk.
Gold Weekly Forecast: XAU/USD snaps four-week streak , closes below $1,900
Update: Gold price is hovering during a very narrow trading range with modest gains. the costs remain struggling by a minor uptick within the US dollar, ETF outflows and weak consumer demand in India. Investors turn their specialise in the US Consumer price level (CPI) data that would impact Fed’s monetary policy decision. The expectations that the Fed would start tapering soon increased following comments from several Fed officials. The US dollar remained steady at 90.08 with 0.02 gains, against a basket of six rival currencies. The stronger greenback makes bullion metal less attractive for other currency holders.
Gold price is trading during a narrow range below $1900 thus far this Wednesday, licking its wounds after a down day. Rejection above the $1900 mark once more recalled the sellers, despite the decline within the US dollar and Treasury yields. before Thursday’s US CPI report, investors remain during a wait-and-see mode and refrain from placing any directional bets, leaving gold price during a familiar range. Gold’s downside, however, remains in restraint amid optimism over the US infrastructure spending talks and US-Sino tensions. Meanwhile, growing inflation concerns and uncertainty over the Fed’s next policy moves limit the advances in gold price.
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Gold prices pushed back above USD1,900/oz early within the trading session but did not hold those levels amid a stronger USD.
The price of gold on Tuesday was slightly lower with XAU/USD sinking some 0.3% by the closing bell on Wall Street after falling from a high of $1,903.93 to a coffee of $1,883.78.
Investors tread water before an influx of what’s to be expected market-moving events, from central banks to US inflation data, over the approaching days.