Gold price is trading at lower levels.

gold(XAUUSD) price has stopped its four-day losing run just below the $1,825 mark, searching for a fresh upswing despite a sluggish performance of the US Dollar so far this Friday.

Hawkish Federal Reserve bets could get a fresh lift on US PCE inflation data.

Treasury bond rates in the United States are straining at higher levels, allowing gold bulls to perform one more dance. The recent string of positive US economic statistics and aggressive Federal Reserve (Fed) speech has raised expectations for three rate rises this year – 25 basis points (bps) in March, May, and June. The annualized US Q4 GDP was raised up to 2.7% on Thursday, while Initial Jobless Claims surprisingly decreased last week. Furthermore, the personal consumption expenditures (PCE) price index in the United States increased 3.7%, up from a prior estimate of 3.2%.

Markets are presently The Federal Reserve terminal rate was priced at 5.347% in July and remained over 5% throughout the year. The US Dollar stays supported alongside US Treasury rates as the US economy continues to demonstrate resilience, signaling that it can sustain higher borrowing costs for a longer period of time.

As a result, the gold price is on track for its fourth weekly decline, while the US Dollar maintains its recent rebound pace. The benchmark US 10-year Treasury yield is trading near to the crucial threshold of 4.0%, putting the gold price at risk of additional declines.

United States PCE inflation data is set to edge higher on a monthly basis.

The spotlight now moves to the Core PCE Price Index, the Federal Reserve’s favored inflation metric, for January. The Core PCE Price Index is higher on a monthly basis, at 0.4% vs. 0.3% earlier, while the headline number is likely to rise to 0.5% from 0.1% previously. Positive data on personal spending and income are also expected to support the US dollar at the expense of the gold price.

Gold(XAUUSD) Technical Analysis

The gold price remained susceptible after breaching the critical $1,825 support level on January 5. Gold bears are keeping an eye on the seven-week low of $1,819 before attempting to test the falling trendline support at $1,801. The 14-day Relative Strength Index (RSI) is trading far below the midpoint, indicating that the downside potential remains intact for the time being for the time being.

When the 21-Daily Moving Average (DMA) approaches the 50 DMA from above, a bear cross is forming. Confirmation of the bearish crossing might lend validity to the gold price’s decline.

On the other hand, any rebound will require acceptance beyond the previous day’s high of $1,834 in order to acquire traction.

Gold bulls’ next target is the weekly high of $1,848, Over that, the psychological barrier of $1,850 may provide significant opposition.