- Gold remains on the defensive below $ 1,790 amid a broad rebound in the US dollar.
- Market sentiment wanes as news related to the virus battles geopolitical fears and concerns about the Fed’s rate hike.
- The US CPI on Friday turns crucial as inflation expectations improve, in focus on locks caused by the virus and yields.
The price of gold is moving back and forth in a familiar range below $ 1,790, unable to stay higher amid a broad rally in the US dollar. Mixed market sentiment is prompting investors to find safety and certainty in the US dollar, even as Treasury yields slow their recovery momentum.
Traders are refraining from placing directional bets on the yellow metal ahead of major US inflation data to be released this Friday. The latest reports that the ECB could probably push its Asset Purchase Program (APP) next week failed to lift confidence around gold.
Gold (XAU / USD) is stable around $ 1,785, recently declining from the intraday high in the European session on Thursday.
The yellow metal showed a bearish candle the day before amid mixed concerns about the South African covid variant and its cure. However, the latest challenges to market sentiment prop up the US dollar and attract gold sellers in anticipation of the important data from the US Consumer Price Index (CPI) to be released on Friday.
Gold Technical Analysis
Despite bouncing off a seven-week-old horizontal area, gold remains below the 200 DMA, not forgetting to mention the previous support line from late September. The metal’s failures to cross key short-term barriers are joined by bearish signals from the MACD and the Doji candle on Wednesday to keep sellers hopeful.
That said, the 61.8% Fib retracement of the September-November high, near $ 1780, precedes the $ 1772 level to restrain short-term declines in gold prices.
After that, several levels marked since October 18 challenge the gold bears around $ 1760 / $ 62.
On the other hand, the 200 DMA and support line turned resistance, respectively around $ 1792 and $ 1798, join the 50.0% Fibonacci level around $ 1800 to question gold buyers.
During the sustained rise in the price above $ 1800, the $ 1815 and $ 1845 levels may offer intermediate stops before driving gold prices toward the November peak of $ 1877.
Gold Daily Chart
Trend: A pullback is expected
Technical Levels
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