Gold Hovers Below $2,000 Ahead of Inflation Figures
Gold prices retreated slightly on Wednesday, with some caution prevailing among investors ahead of important data releases from the U.S. and Eurozone related to inflation.
At the time of writing, the spot price XAU/USD is trading at the $1,965 area, down 0.48% on the day.
While banking fears continue to recede and financial markets remain optimistic, there is a lack of fresh catalysts to motivate directional moves.
The macroeconomic calendar has been sparse for three consecutive days leaving room for some dollar appreciation. However, global stock markets have posted substantial gains, with U.S. indexes closing in the green.
The macroeconomic calendar is expected to become active on Thursday, with Germany and Spain set to publish the preliminary estimate of their March Harmonized Index of Consumer Prices (HICP) ahead of the Eurozone figure, which will be released on Friday.
Additionally, the United States will unveil the final estimate of the Q4 Gross Domestic Product (GDP) on Thursday, expected to confirm an annualized growth of 2.7%. On Friday, the U.S. will release the February Core Personal Consumption Expenditures Price Index, which is the Federal Reserve's preferred inflation measure and is predicted to increase by 4.7% over the previous 12 months.
From a technical perspective, the XAU/USD pair is consolidating near recent highs, with indicators losing momentum on the daily chart but maintaining the bias tilted to the upside.
The yellow metal needs a clear break above the $2,010 zone to target March 2022 highs at the $2,070 region. On the other hand, losing the $1,930 support area would expose the 20-day SMA at $1,910. A break below the latter would deteriorate the metal's technical outlook.
At the time of writing, the spot price XAU/USD is trading at the $1,965 area, down 0.48% on the day.
While banking fears continue to recede and financial markets remain optimistic, there is a lack of fresh catalysts to motivate directional moves.
The macroeconomic calendar has been sparse for three consecutive days leaving room for some dollar appreciation. However, global stock markets have posted substantial gains, with U.S. indexes closing in the green.
The macroeconomic calendar is expected to become active on Thursday, with Germany and Spain set to publish the preliminary estimate of their March Harmonized Index of Consumer Prices (HICP) ahead of the Eurozone figure, which will be released on Friday.
Additionally, the United States will unveil the final estimate of the Q4 Gross Domestic Product (GDP) on Thursday, expected to confirm an annualized growth of 2.7%. On Friday, the U.S. will release the February Core Personal Consumption Expenditures Price Index, which is the Federal Reserve's preferred inflation measure and is predicted to increase by 4.7% over the previous 12 months.
From a technical perspective, the XAU/USD pair is consolidating near recent highs, with indicators losing momentum on the daily chart but maintaining the bias tilted to the upside.
The yellow metal needs a clear break above the $2,010 zone to target March 2022 highs at the $2,070 region. On the other hand, losing the $1,930 support area would expose the 20-day SMA at $1,910. A break below the latter would deteriorate the metal's technical outlook.
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