-1.85% for Gold as US CPI inflation report anticipated

Traders Union
All News
Commodities
Gold drops 1.85% to $4,087 today

Highlights

Gold extended its losses for a third consecutive day as traders trimmed positions ahead of the US Consumer Price Index inflation report.
Ongoing uncertainty about the upcoming inflation data contributed to persistent downside momentum in gold this week.
Gold trades below key moving averages with most technical indicators signaling seller control; price expected in the $4,038 to $4,136 range short term.

Cautious sentiment intensifies as traders reduce exposure ahead of CPI

Gold has seen losses extend for a third straight day as traders adjusted their positions in advance of the upcoming US Consumer Price Index (CPI) inflation report, according to FXStreet. The anticipation of new inflation data led market participants to reduce their exposure, driving cautious sentiment and prompting additional selling. The heightened uncertainty surrounding the CPI release has been a primary factor behind Gold's persistent downside momentum this week.

Mixed technical momentum as resistance aligns with oscillator divergence

On the technical front, XAU/USD remains below the MA-20 at $4,168 and MA-50 at $4,165 on the H4 timeframe, and below the MA-200 at $4,446 on the daily chart. Immediate resistance is seen at the Ichimoku Kijun, which stands at $4,173. Momentum indicators show mixed signals, as MACD points to a Sell bias and ADX is Neutral, while RSI at 43.48 and CCI are both indicating Sell conditions. By contrast, Stochastic RSI signals a Strong Buy, and Bull/Bear Power is Overbought, suggesting divergence among the oscillators. The Awesome Oscillator is Neutral, providing little directional guidance.

Downside risk persists as range-bound trading limits upside

In the near term, Gold is likely to fluctuate in a range between $4,038 and $4,136 over the next two to three trading days. The prevailing model suggests a very high probability of further downside, while the likelihood of a significant upward move remains low given the existing market structure. Should the price recover and rise above immediate resistance at $4,173, a bullish scenario could emerge. Alternatively, a decisive fall below $4,038 would indicate amplified downside risk and could trigger a sharper sell-off.

Viktoras Karapetjanc, analyst at Traders Union, sees that gold remains under pressure after three straight sessions of losses. He notes that anticipation of the US CPI report has driven defensive sentiment, with traders reducing their positions. Despite mixed signals from technical indicators, Karapetjanc maintains a constructive outlook if immediate resistance is breached. The analyst highlights that the broader macro narrative is still supportive, provided market stress does not worsen. "If gold manages to reclaim $4,173, I expect momentum to shift and buyers to return."

Earlier, analysts noted that gold was facing persistent downside pressure amid technical and macroeconomic headwinds. This outlook is reinforced as fresh inflation-related caution drives continued weakness, making $4,038 a critical level to monitor for potential acceleration of downside risk in the near term.

Source of Data: XAU Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.