Gold price dodges CPI shock as US yields hand bulls lifeline - mitrade.com

AI desk brief

Gold bounced from below $4,300 after US CPI matched expectations and core ran slightly hot, with XAU/USD reclaiming the 100-day SMA at $4,335 and trading around $4,374, up 1.29%. The initial USD bid faded even as money markets still price a 91% chance of a Fed hike next week, while the 10-year Treasury yield slipped 1 bp to 4.951% and the weaker University of Michigan sentiment print helped keep bullion supported.

Near term, $4,400 is the first resistance; a break there opens $4,450 and $4,500, then the 200-day SMA at $4,538. On the downside, a loss of $4,335 and $4,300 would expose $4,282 and the 50-day SMA at $4,269. The next key catalyst is next week’s Fed decision and chair press conference, with upcoming US data including ADP, Empire State, retail sales, housing and jobless claims.