"Gold Price Forecast: Factors Influencing XAU/USD Levels"

1 min read
Source: DailyFX
"Gold Price Forecast: Factors Influencing XAU/USD Levels"
Photo: DailyFX
TL;DR

Gold prices have been consolidating without clear direction, awaiting fresh catalysts, with next week's US inflation data likely to drive market volatility and guide precious metals in the near term. The Federal Reserve's resistance to cutting rates imminently could be validated by limited progress toward disinflation in the upcoming consumer price index report. An upside surprise in the CPI numbers would be bearish for gold, while lower-than-forecast inflation readings could be positive for the yellow metal. Gold prices are currently consolidating around the 50-day moving average, with resistance at $2,065 and support at $2,005, and a breakout in either direction likely to guide the next trend.

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