Gold Price Forecast: Gold price is attempting a bounce towards the 21-Simple Moving Average (SMA) at $1750 after the yellow metal sustained its recovery from five-month lows of $1688.
Gold Price Forecast
“The key event risk for gold traders remains the US Consumer Price Index (CPI), which is seen arriving a tad weaker at 0.5% in July vs. 0.9% expectations. Meanwhile, the monthly core CPI figure is also likely to drop to 0.4% in the reported month. Although, softer inflation data could fuel a corrective pullback in the dollar, especially after the recent advance, which could further aid gold’s recovery (for now), before the precious metal resumes its downside.”
“Gold looks to recapture the bearish 21-SMA at $1750. Although, the further upside appears elusive amid a bearish cross on the said time frame. The 100-DMA has pierced through the 200-DMA from above, flashing bearish signals.” “If the bearish pressures return, a test of the $1700 mark will be inevitable. Further south, the multi-month lows of $1688 could be on the sellers’ radars.”