Gold Technical Analysis
On the daily chart, gold prices are flirting with breaking under a bearish Rising Wedge chart formation. A confirmatory downside close could open the door to resuming the dominant downtrend from March through the end of October.The latter may then reinstate a near-term upward trajectory. Breaking above 1810 opens the door to uptrend resumption towards the June high at 1879.
Fundamentals
Gold prices fell 0.94% on Monday, the worst single-day performance in one week. A closer at the past 24 hours shows that XAU/USD succumbed to a combination of a rising US Dollar and Treasury yields.
Markets likely readied up for the highly anticipated US CPI report, which is due at 13:30 GMT on Tuesday. The headline rate is seen slowing from 7.7% y/y to 7.3%. Meanwhile, the core gauge, which strips out volatile food and energy prices, is expected at 6.1% versus 6.3% prior. Moreover, the gap between headline and core is expected to narrow from 1.4 to 1.2.
On the daily chart, gold prices are flirting with breaking under a bearish Rising Wedge chart formation. A confirmatory downside close could open the door to resuming the dominant downtrend from March through the end of October.The latter may then reinstate a near-term upward trajectory. Breaking above 1810 opens the door to uptrend resumption towards the June high at 1879.
Fundamentals
Gold prices fell 0.94% on Monday, the worst single-day performance in one week. A closer at the past 24 hours shows that XAU/USD succumbed to a combination of a rising US Dollar and Treasury yields.
Markets likely readied up for the highly anticipated US CPI report, which is due at 13:30 GMT on Tuesday. The headline rate is seen slowing from 7.7% y/y to 7.3%. Meanwhile, the core gauge, which strips out volatile food and energy prices, is expected at 6.1% versus 6.3% prior. Moreover, the gap between headline and core is expected to narrow from 1.4 to 1.2.