- Gold stability and modest rise in yields keep gold limited.
- XAU / USD near support area starting at $ 1785.
- In the crosshairs: US inflation data for August.
Gold is falling on Tuesday ahead of major US data release although it remains within the recent range. The price marked a low for the day at 1785.99 $ an ounce and remains close to the floor, with the negative tone.
De losing the 1780/85 $ band the negative moment of the yellow metal would intensify, opening the doors to further falls with a target at the next strong support at $ 1770. To the upside, resistance emerges at $ 1795, and a confirmation above would suggest a visit to the next barrier at $ 1805. Already to assert itself on the latter, gold could extend the raises to $ 1,815.
Focus on inflation data
At 12:30 GMT the inflation data for August will be published in the US. A rise in the consumer price index is expected during that month of 0.4% (annual rate at 5.4%) and that the underlying will advance 0.3%.
The data has a high potential to influence the market, considering that next week will be the meeting of the Federal Reserve. A high reading could lead to a possible decision on a purchasing program cut forward. This would generate noise in the bond market, which has a key influence on gold.
Technical levels
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
