Gold Prices Approach Potential Support as US Dollar Surges Ahead of US CPI

[MongiIG]

Jul 12, 2022 | DailyFX
Thomas Westwater, Analyst

GOLD, XAU, INFLATION BETS, CPI, US DOLLAR, TECHNICAL OUTLOOK - TALKING POINTS

• Gold prices slide as economic growth woes send US Dollar surging higher
• US CPI numbers unlikely to support bullion prices amid hawkish Fed
• XAU/USD approaches the September 2021 low as technicals deteriorate

GOLD TECHNICAL FORECAST

XAU prices are down over 4% since July 01, with much of that weakness following last week’s break below the psychologically important 1800 level. A Death Cross, where the 50-day SMA crosses below the 200-day SMA, was another high-profile signal that bodes poorly for the outlook.

Prices are currently near the September 2021 low (1721.71). A move lower would see a support zone around the 1680 level come into view. That level has offered support several times through 2021, making it a prime spot for bulls to regroup if prices continue to slide.

XAU/USD DAILY CHART

Chart created with TradingView