Image Source: Pixabay
Gold price (XAU/USD) struggles to capitalize on its intraday gains to levels beyond the $2,700 mark and retreats sharply from over a two-week high touched during the Asian session on Wednesday. This marks the first day of a negative move in the previous three and could be attributed to some repositioning trade ahead of the US consumer inflation figures. The crucial US Consumer Price Index (CPI) report will guide Federal Reserve (Fed) policymakers on their decision next week, which, in turn, will influence the US Dollar (USD) and provide a fresh impetus to the non-yielding yellow metal.Heading into the key data risk, some follow-through recovery in the US Treasury bond yields assists the USD in preserving its gains registered over the past three days and exerts some pressure on the Gold price. That said, geopolitical risks stemming from the worsening Russia-Ukraine war and tensions in the Middle East, along with concerns over US President-elect Donald Trump’s tariff plans, might continue to offer some support to the safe-haven XAU/USD. Moreover, the expected rate cuts by major central banks should limit losses for the commodity and warrant caution for bearish traders.
Gold price bulls opt to lighten their bets amid a further recovery in US bond yields, ahead of US CPI report
Gold price corrective slide could be seen as buying opportunity near the $2,655-2,655 resistance breakpoint
From a technical perspective, this week’s breakout through the $2,650-2,655 supply zone and the subsequent move up favors bullish traders. Moreover, oscillators on the daily chart have been gaining positive traction and are still far from being in the overbought territory. This, in turn, validates the near-term positive outlook for the Gold price and supports prospects for the emergence of some dip-buying near the aforementioned resistance breakpoint. This should help limit the downside for the XAU/USD near the $2,630 area, below which the downward trajectory could extend further towards the $2,600 round figure.On the flip side, a sustained move beyond the $2,700 round figure could extend further towards the $2,720-2,722 hurdle. This is followed by resistance near the $2,735 region, which if cleared will suggest that the recent corrective decline from the all-time high touched in October has run its course and shift the bias in favor of bullish traders. The momentum might then lift the Gold price to the $2,758-2,760 barrier en route to the $2,770-2,772 region and the $2,790 area, or the record peak.More By This Author:Gold Price Clings To Gain Around $2,670/Two-Week Top, Short-Term Bullish Bias Remains GBP/USD Eases From Multi-Week High, Trades With Negative Bias Below Mid-1.2700s WTI Struggles Near Weekly Low, Below $68.00 Mark As Traders Await US NFP Report