The bullion price is consolidating and remained trading at $1,750 as markets are in a wait-and-see mode. Investors are now waiting for key EU inflation data and for the speech of the Federal Reserve chairman, which are both due later today.
Overall, we could say that after recent rebounds, gold is confirming its positive momentum. Indeed, in the last few weeks, bullion jumped by around $100 and recovered the $1,750 threshold.
The main driver behind this came from the US, where inflation data indicates that price pressure is starting to slow down. Consequently, the greenback lost ground, with the EUR/USD pair returning to well above parity in the region of 1.03.
Considering this, it is clear that the markets are awaiting the speech of The Fed’s Jerome Powell, which is scheduled this evening (18:30 GMT). Investors will be hoping for any further indication about the next steps of the Federal Reserve monetary policy, including when the peak of the Fed fund’s rate will be reached.
Today’s macro-economic calendar is busy, and includes third quarter US GDP as well as the ADP labour data – an anticipator of the much more important non-farm payroll data that will be released later this week. This morning investors will also discover the latest figures related to the EU CPI.
After last month’s record level of 10.6%, it is expected the price rally should start to curb to 10.4%, according to analyst forecasts. Any confirmation of such a slowdown of the price growth could be a positive catalyst for the gold price.
From a technical point of view, bullion shows resilience, with the first support zones being placed at $1,730 and $1,700, while a breach of the $1,790 resistance zone can open space for further recoveries.
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