Gold price has topped the immediate resistance level of $2,020

The gold price (XAUUSD) has shown signs of exhaustion on the upside after hitting the critical resistance level of $2,020.00 in the Tokyo session. The precious metal’s upside bias remains strong, as the impact of slowing inflation in the United States will last longer.

The USD Index has resisted further declines as the probability of a 25-basis point rate hike at the May meeting has risen to more than 68%.

The US Dollar Index (DXY) has shown some resistance after testing its critical low of 101.44. As the lower US Consumer Price Index (CPI) has failed to reduce the likelihood of the Federal Reserve raising interest rates by 25 basis points (bps) in a row (Fed).

According to the CME Fed watch tool, the chances of a 25-basis point rate hike. At the May monetary policy meeting are greater than 68%.

Meanwhile, after a bearish settlement on Wednesday. S&P500 futures have extended their gains, indicating recovery in the risk-on mood.

A close examination of the US inflation report reveals that headline inflation has fallen more than expected to 5.0%. Owing to lower petrol prices. The investing community is aware that oil prices have significantly recovered in April following a surprise announcement of OPEC+ production cuts. Which could spoil Gold Bull’s party.

As rent prices remained stable, the US core CPI increased to 5.6% from 5.5% in the previous release.

In contrast to headline inflation, core CPI has risen to 5.6% from 5.5% in the previous release, as rent prices have remained stable. This suggests that core inflation may remain extremely stubborn in the near future.

According to Reuters, San Francisco Fed Bank President Mary Daly stated late Wednesday, “There’s a lot more in the pipeline of monetary policy tightening.” She did, however, refrain from forecasting the tightening cycle has come to an end.

Gold Daily Trends