The gold price attracts new buying on Tuesday, snapping a two-day losing streak to the $1,982-$1,981 region, or a three-day low reached the day before. Further The XAUUSD maintains its gains through the first half of the European session. And is now trading just above the $2,000 psychological level, near the upper end of the daily trading range.
Furthermore The US Dollar (USD) encounters some supply, halting a four-day-old recovery trend from a two-month low reached last week. And amid some trade repositioning ahead of the latest consumer inflation figures from the United States (US) on Wednesday. Moreover This, in turn, is viewed as a key factor that benefits the US Dollar-denominated gold price and continues to support the positive move.
Traders appear cautious ahead of the US CPI report and FOMC minutes on Wednesday.
As a result, the market’s attention will be drawn to the FOMC meeting minutes. Which will be preceded by the release of the crucial US Consumer Price Index (CPI) report on Wednesday. This could influence market expectations about the Fed’s next policy move, driving USD demand. And giving some meaningful impetus to the gold price. Traders will use the release of US monthly Retail Sales data on Friday to determine the gold near-term USD’s trajectory this week.
Gold Technical Outlook
Technically, any move up is likely to encounter stiff resistance near the $2,020 horizontal zone. Furthermore The gold price could then accelerate towards the $2,048-$2,050 intermediate hurdle on its way to an all-time high in the $2,070-$2,075 range.
On the other hand, the $1,990-$1,980 area appears to have emerged as an immediate strong support. A break below should pave the way for a drop towards the $1,955-$1,950 region. Before dropping to the next relevant support near the $1,935-$1,934 area.
Moreover The Gold corrective decline may be extended even further towards the horizontal zone of $1,918-$1,917 is on its way to the $1,900 mark.
Gold Daily Trends
| Daily SMA20 | 1968.77 |
| Daily SMA50 | 1900.12 |
| Daily SMA100 | 1864.68 |
| Daily SMA200 | 1788.64 |
