Gold Price Forecast: XAU/USD remains capped below $1,790 amid uptick in yields

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Gold Price Forecast: XAU/USD remains capped below $1,790 amid uptick in yields
  • Gold prices remain sidelined between key trend lines, below crucial SMA convergence.
  • Market sentiment dwindles as US inflation-matched forecasts but Fed rate hike talks stay on the table.
  • US Treasury yields struggle to extend first weekly gains in five, S&P 500 Futures post mild gains.
  • Gold Price Weekly Forecast: XAU/USD is at the mercy of the Fed, ascending triangle pattern in play

Update: Gold price is feeling the pull of gravity, as it eases from daily highs after facing rejection once again at $1,790. The latest leg down in gold price can be associated with an uptick in the US Treasury yields, aided by the upbeat risk sentiment. Tame US inflation data released on Friday eased worries over aggressive Fed rate hikes, underpinning the non-interest-bearing gold.

From a broader perspective, gold price extends its sideways trading between $1,770-$1,795 seen last week. Markets stay focussed on the Fed policy decision for a fresh direction in the bright metal.

Gold (XAU/USD) stays directionless around $1,786, keeping the monthly sideways performance amid Monday’s Asian session.

The US Consumer Price Index (CPI) flashed a fresh 39-year high but matched market forecasts of 6.8% YoY for November. Also adding to the previous relief rally were the stable inflation expectations revealed via the University of Michigan Consumer Sentiment Index. That said, the RR, a gauge of calls to puts, marked a five-week downtrend with the latest figures of -0.1000.

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