The precious metal has been under pressure for most of the week due to expectations of a Fed rate hike. Following the release of the U.S. Consumer Price Index, gold prices fell to a one-day low on the 13th before correcting to trade at $1,911.
Gold prices fell to a two-week low as the market was inactive in anticipation of potentially higher inflation figures, as well as higher oil prices and strong consumer spending.
Gold is currently trading at $1,927.65, down 0.25% in the last 24 hours.
Buyers in the XAU/USD remain cautious following the release of volatile U.S. CPI data, and retail traders are mostly long gold, which could point to further declines.
Trading in this precious metal is extremely cautious. From a technical point of view, prices broke through the 200-day moving average yesterday and have continued to fall today towards the psychological level of $1,900. The RSI also supports further bearishness.
This is not surprising given the uncertainty surrounding the US dollar, which has been the driving force behind gold prices recently. However, while gold remains in a downtrend, the downward momentum seems to be weakening.
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