Gold stays pressured below $1900 as traders await ECB, US CPI

OANDA:XAUUSD   Gold Spot / U.S. Dollar
Gold prices remain on the back foot amid anxious hours of early Thursday as markets wait for the ECB and the US Consumer Price Index ( CPI ) data. Although the ECB is less likely to become a major catalyst, the anticipated optimism of the bloc’s policymakers could offer intermediate bounce to gold prices. However, a stronger-than-expected beat of the US inflation data won’t be taken lightly and can drag the yellow metal on release. It should, however, be noted that ascending support line from mid-May and late April, respectively around $1,879 and $1,871, could probe sellers whereas 200-SMA near $1,848 and May 10 top close to $1,845 adds to the downside filters.

Meanwhile, an upside clearance of the monthly resistance line, close to $1,900, will aim for the recent high of $1,917. In a case where the gold buyers keep reins past $1,917, October 2020 levels near $1,933 should offer an intermediate halt during the rally targeting the yearly peak of $1,960. To sum up, today is a test for the gold buyers who seemed to have tired of late.


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