Gold price is consolidating its earlier loss, hovering at the $1,900 level. As the dust settles on the US banking sector crisis and Tuesday’s important US Consumer Price Index (CPI) data. Gold sellers maintain grip despite a stronger market mood and widely lower US Dollar (USD).
After dropping to almost 50-50 on Monday. Swaps pricing is now setting for the Federal Reserve to raise rates by a quarter percentage point next week.
The US Consumer Price Index has priced in Federal Reserve rate pause bets.
This comes as the United States Consumer Price Index (CPI) came in mainly in line with predictions. Except for the monthly Core number, which arrived a touch hotter than predicted. The market reacted negatively to the high-impact US CPI report. This Wednesday, the gold price is consolidating its earlier loss, hovering at the $1,900 level. As the dust settles on the US banking sector crisis and Tuesday’s important US Consumer Price Index (CPI) data.
Gold sellers maintain grip despite a stronger market mood and widely lower US Dollar (USD). After dropping to almost 50-50 on Monday, swaps pricing is now setting for the Federal Reserve to raise rates by a quarter percentage point next week. This comes as the United States Consumer Price Index (CPI) came in mainly in line with predictions. Except for the monthly Core number, which arrived a touch hotter than predicted. The market reacted negatively to the high-impact US CPI report. the reporting month, compared to 0.4% projected and 0.4% before.
Despite growing expectations for a 25-basis point Fed rate rise in March. US central bank is still on track to decrease its rate of tightening. Markets priced in a 50-basis point rate rise for March following Fed Chair Jerome Powell’s Congressional comments earlier this month.
Dovish Fed predictions might help limit the gold price’s corrective decline. At the time of writing, the price of gold is trading at $1,901, losing 0.15% on the day. The losses look to be contained, owing to the US Dollar’s negative consolidation phase among its main counterparts.
Gold Technical Outlook
Despite heavy resistance just shy of the February 3 high of $1,918, gold closed above the $1,900 mark again on Tuesday.
The 14-day Relative Strength Index (RSI) trades listlessly but well above the midline, indicating that gold is a solid purchase on pullbacks.
The previous day’s low of $1,895 will be challenged if the gold price falls further. On further drops, floors will open towards the marginally bullish 50-Daily Moving Average (DMA) around $1,875. But, the February 9 high of $1,890 might help minimize losses for gold purchasers.
Conversely, gold purchasers must re-establish themselves above the $1,910 round number. A daily close above the $1,919 level is required to restore the year-to-date advance. $1,960 as a high. The $2,000 level is seen as the next upward objective.
