The gold price is gaining momentum as it approaches the important resistance level of $1,885-$1,886.
The gold price is maintaining at eight-month highs as bulls seek another test of the $1,900 level ahead of the release of the US Consumer Price Index (CPI).
The US Dollar remains fragile due to forecasts of a worse US CPI data, which increases betting on a dovish Fed (Fed) turn later this year.
Markets expect the Fed to moderate its rate of tightening amid declining inflation and a tight labor market, with a 25-basis point (bps) rate rise expected at the start of the following month.
The underperformance of US Treasury bond rates throughout the curve is also helping the gold price.
Despite the Fed’s recent aggressive comments, investors are refusing to give up. up on expectations that the Fed may change its monetary stance.
Furthermore, risk trends will play an important part in the gold price action in the coming day.
