Daily Market Analysis and Forex News
XAUUSD rebounds off $1900
The gold prices have decreased towards the psychologically important $1900 amid a mixed CPI reading last Wednesday.
A recent uptick in the headline consumer price index (CPI) may indicate the potential for another rate hike towards the end of 2023.
As of today, the market expects a 32.6% chance of another rate hike at the Fed’s meeting in November.
A further increase in rates may deter the XAUUSD bulls from resurfacing above the $1950 round number, temporarily capping the gold’s upside potential.
At the time of writing, the world's largest gold backed ETF (SPDR Gold Trust) has lost ~$979 million in vlaue since Monday
From a technical perspective the 21-period SMA is set to act as an immediate resistance at $1919.
To the downside, the psychologically important $1900 might provide a strong support if XAUUSD bears try to carry on with the downward momentum.
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