- XAU / USD recovers above $ 1,780 after the higher than expected US CPI reading.
- The Fed’s policy makers made remarks indicating a beginning of the bond cut at the FOMC meeting in November.
- Silver is up along with gold, almost 3% on the day.
El oro (XAU/USD) it rises during the American session, trading at $ 1,793, up almost 1.86% at the time of writing. Factors such as the highest August inflation reading in the US and underlying figures, a 0.2% increase (month-on-month), the current energy crisis in Europe and Asia, and falling US Treasury yields. .US 10 years boost gold.
In addition, on Tuesday, members of the Federal Reserve made statements, expressing that they would like to begin the QE reduction for the November meeting, propelling investors towards safe-haven assets such as gold and silver (XAG / USD). , which is up almost 3%, around $ 23.20.
Market sentiment is mixed, as shown by the increase in European stock indices between 0.12% and 0.55%, while, on the other hand, the most significant stock indices fall between 0.21% and 0.48%, with the exception of the Nasdaq Composite, high-tech, which increased by 0.42%.
The US dollar index that tracks the performance of the dollar against a basket of pairs is down 0.28% to 94.25, supported by the decline in 10-year US yields, losing 4 bps to 1,533. %, raising prospects for a rise in yellow metal prices.
The US consumer price index rose above 5.4%, a tick higher than expected
Turning to the data, the US Bureau of Labor Statistics (BLS) released inflation figures for August. The Consumer Price Index increased by 5.4%, up from 5.3%, while the Basic Consumer Price Index, which excludes food and energy prices, was unchanged at 4%, both readings on a annual basis.
Later, the Federal Reserve will release the latest Minutes of the FOMC meeting at 18:00 GMT.
XAU / USD price forecast: Technical perspective
Daily chart
Gold (XAU / USD) tests the 200-day moving average (DMA) at around $ 1,799. A daily close above the latter would change the downward bias of gold, as the 200 DMA is the barometer of a long-term trade in financial markets. But, in addition to the 200 DMA, the 100 DMA and a downward sloping trend line could exert intense selling pressure around the $ 1,795 -1,805 area.
For XAU / USD buyers, a daily close above that zone could pave the way for more gains. The first level of supply would be the September 3 high of $ 1,833. A gap above that level could expose the June 11 high of $ 1,902.
Momentum indicators such as the Relative Strength Index (RSI) is at 59, pointing aggressively higher, suggesting that gold is under intense buying pressure as it remains below oversold levels.
Technical levels
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