- Metals stable ahead of US inflation data.
- An 8% year-on-year rise in the October CPI is expected.
- XAUUSD remains above $1,700, after rejection near $1,720.
Gold is trading around $1706, on a quiet day compared to the volatility of previous sessions, ahead of the US inflation data, which is expected to generate a lot of movement in the market.
Still bullish despite brake
Gold hit a five-week high on Wednesday at $1,722, but after hitting that level, it began a pullback that found support at $1,700. Price stability above $1,700 is a positive factor for the precious metal. To enable further upside, it must first break above $1,715 and then assert itself above $1,730, a medium-term resistance.
On the downside, losing $1,700 could lead to a bearish extension. Strong and critical support is seen at $1670, which, if broken, would leave gold vulnerable.
stable for now
At 13:30 GMT, the data for retail inflation. The Consumer’s price index (CPI) is expected to be at 8% year-on-year. This data will be critical and can generate a lot of noise in the market.
In the previous one, the dollar is operating higher in the market but without affecting gold, which may be another sign of strength. Still, a high inflation figure will be a big challenge to the stability and current bullish outlook for XAUUSD.
In addition to inflation, the weekly report on requests for unemployment benefits will be published and several officials from the Federal Reserve.
Technical levels
Source: Fx Street
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