GOLD XAUUSD Chart Technical Outlook set to bounce back toward $2,340 as inflation continues falling
XAU/USD has slipped below the 4h-50 SMA – but holds above support at $2,316. The battle between the bulls and bears continues within the broad sideways trend. Resistance is at $2,340, followed by $,2352 and $,2368. Support awaits at $2,316, $2,306, and $2,286.
If we talk about fundamentals, the US core CPE slowed down to 0.1% MoM and 2.6% YoY, showing that inflation is falling. While US 10-year yields remained high – partially an effect of end-of-quarter flows – the good news for consumers will likely push yields lower and Gold higher.
The biggest test awaits on Friday, with Nonfarm Payrolls. I expect them to show some weakness in the labor market, also supporting the precious metal. Another event worth watching is Fed Chair Powell’s speech on Wednesday.
