Today's price is likely to move within the 1920 price range
XAUUSD
The price of gold is currently trading sideways as the US dollar retreats. The improvement in US Treasury yields has the potential to put downward pressure on gold prices.
China's disinflationary pressures have also had an impact on the yellow metal.
During the early trading hours in the Asian session on Monday, gold is trading around $1,920 per troy ounce.
However, it is struggling to maintain its position near last week's close and is only experiencing minor support due to the weakening US dollar.
There are expectations that the US Federal Reserve will keep interest rates high for a significant period of time.
It is also anticipated that there may be a 25 basis point interest rate hike by the end of 2023, which could further drive down gold prices.
Investors are eagerly awaiting more information from the upcoming release of August's US Consumer Price Index (CPI).
This data will provide further indications about inflation and potentially impact gold prices.
In summary, various factors such as changes in US Treasury yields, China's disinflationary pressures, and expectations regarding future interest rate hikes by the Federal Reserve are influencing current trends in gold pricing.
Additionally, market participants are closely monitoring economic indicators like CPI for insights into inflation levels that could affect investment decisions related to this precious metal.
Comment:
The price of gold is fluctuating above the support level of $1,900.00 while investors are waiting for inflation data.
The trading range for gold remains within the range from the previous day, indicating a decrease in volatility. The 200-day Exponential Moving Average (EMA) at around $1,910.00 is providing support for the yellow metal, but it is being hindered by the 20-day EMA at approximately $1,921.00. Investors are cautious and staying on the sidelines due to these factors affecting gold's price movement.
The trading range for gold remains within the range from the previous day, indicating a decrease in volatility. The 200-day Exponential Moving Average (EMA) at around $1,910.00 is providing support for the yellow metal, but it is being hindered by the 20-day EMA at approximately $1,921.00. Investors are cautious and staying on the sidelines due to these factors affecting gold's price movement.
The US Dollar is gaining appeal as the economy successfully manages higher interest rates.
However, if there is an unexpected increase in US inflation, it could negatively impact market sentiment and lead to discussions about another interest rate hike becoming more intense.