Fundamental Descriptions: Gold was down on Thursday morning. Investors are digesting the U.S. consumer price index (CPI), which suggested inflation remains high but has peaked in April, easing some concerns about more aggressive interest rate hikes from the Federal Reserve. Looking ahead, Gold Price will continue to remain at the mercy of the US dollar price action and broader risk tone, as the Fed expectations and growth concerns keep leading the way.
Technical view: Gold Price tested offers below the critical 200-Daily Moving Average (DMA) at $1,836 on Wednesday, although bulls defended the latter allowing an impressive recovery. The renewed upside in XAU/USD seems to be fading this Thursday, as the price is looking to surrender the previous week’s low and the psychological level at $1,850.
Alternate Scenario: Acceptance above Tuesday’s high of $1,865 is needed for Gold bulls to cement a meaningful recovery towards $1,884. Further, the $1,900 mark will challenge the bearish commitments.
Technical view: Gold Price tested offers below the critical 200-Daily Moving Average (DMA) at $1,836 on Wednesday, although bulls defended the latter allowing an impressive recovery. The renewed upside in XAU/USD seems to be fading this Thursday, as the price is looking to surrender the previous week’s low and the psychological level at $1,850.
Alternate Scenario: Acceptance above Tuesday’s high of $1,865 is needed for Gold bulls to cement a meaningful recovery towards $1,884. Further, the $1,900 mark will challenge the bearish commitments.