Following the release of the US consumer inflation data, the gold price reverses an early North American session decline to the $1,873 region and surges to a new eight-month high.
The XAU/USD is now trading just below the $1,900 level, up more than 1.0% on the day, and it appears that it will continue to rise.
The US Dollar recovers from a seven-month low in response to largely consistent US Consumer Price Index (CPI) data, which in turn weighs down the price of gold denominated in the US currency.
However, the fundamental landscape is still heavily in favor of optimistic traders. The advent of some dip-buying in the most recent hour supports the optimistic picture.
This in turn strengthens the likelihood of a further upward movement for the gold price in the short future, but it waiting for continued gains over $1,900 before making new bullish wagers is advisable.
|
Daily SMA20 |
1823.72 |
|
Daily SMA50 |
1782.87 |
|
Daily SMA100 |
1730.86 |
|
Daily SMA200 |
1777.31 |
