- US CPI figures are mostly in line with expectations.
- The dollar resumes its broad slide, Wall Street futures reach new highs.
- XAU/USD remains above $1,900 after US data, eyeing recent highs.
Gold prices moved higher after the release of US inflation data. XAU/USD rallied from around $1,900, reaching levels above $1,910, and subsequently losing strength. The yellow metal is looking for the monthly high that was reached early on Tuesday around $1,915.
The US Consumer Price Index (CPI) rose 0.4% in February, and the annual rate slowed from 6.4% in January to 6.0%, both data in line with market consensus. Core CPI rose 0.5% from the prior month, slightly above the 0.4% expected; and the underlying annual rate rose 5.5% year-over-year, down from 5.6% the prior month.
The US inflation figures did not surprise market participants. Yields in the US rose modestly, suggesting that Gold’s rise is being driven by an overall weaker Dollar and improving sentiment. If the rise in US yields continues, XAU/USD could find it difficult to extend its gains.
XAU/USD is facing strong resistance around $1,915. A break to the upside would clear the way for further gains. The next area to watch is at $1,935/$40. Conversely, the $1,900-$1,895 band emerges as initial support, followed by $1,875.
XAU/USD Technical Levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
