Gold price re-attempts bid on a weaker US dollar.
After a negative close on Wednesday, gold is seeking to find upside traction above $2,030 so far on Thursday. However, a broad-based United States Dollar (USD) recovery is restraining the gold prices rise yet again.
Markets remain cautious in the face of weaker Chinese inflation statistics.
Following the release of the US CPI inflation data, all eyes turned to China’s CPI and Producer Price Index (PPI) prints for new market effect and gold price movement. China’s Consumer Price Index climbed 0.1% year on year in April, the smallest rate since early 2021. Prices dropped 0.1% month on month. China’s Producer Price Index, which monitors wholesale prices, decreased 3.6%.
Hopes for China’s reopening and its beneficial economic impact appear to be fading, sapping investors’ confidence early Thursday. As a result, the US Dollar has strengthened. is finding new demand, restricting gold purchasers’ optimistic aspirations.
The focus now shifts to the United States PPI data, which is coming later in American trade on Thursday, for further trading momentum. Federal Reserve policymakers’ speeches will also be extensively scrutinized for clues about the Fed’s policy expectations.
Gold Technical Outlook
Nothing appears to have changed technically for the Gold price, as the bullish potential remains intact despite the confirmation of a falling wedge breakthrough last week. The 14-day Relative Strength Index (RSI) remains above the midpoint, indicating that bulls are likely to maintain control.
If the revived uptrend continues, gold purchasers will be ready to test the $2,050 mark once more. Acceptance over the latter opens the door to record highs of $2,080.
Gold sellers, on the other hand, might retake control with a persistent fall below this week’s low of $2,014, below which the modestly bullish 21-Daily Moving Average (DMA) at $2,010 would be tested.
Further south, the $2,000 psychological threshold will remain a difficult nut to crack.
