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Prior to US inflation, gold stays bearish with a target price of $1,650.

Prior to US inflation, gold stays bearish with a target price of $1,650.

Prior to the important US Consumer Price Index, the gold price (XAU/USD) reverses the previous day’s comeback off the weekly low by accepting offers to renew the intraday low (CPI). The recent decline in the price of metal may be related to the hawkish outlook for the Fed’s next move, particularly in light of the most recent Federal Open Market Committee (FOMC) Meeting Minutes. The news stories about China, which are intensifying lockdowns prompted by viruses in Shanghai and Hong Kong as the US increases challenges for chipmakers, are also putting downward pressure on bullion. Alternately, the pre-CPI trade pause combines with China’s stimulus, via the involvement in the housing market, to limit the fall of the XAU/USD. The pivot point one-week S1, the previous day’s low, and the Fibonacci 38.2% one-month are all components of the $1,660 important support, according to the Technical Confluence Detector. Minor support at $1,655 might then be used to test the bear’s resolve because it includes the pivot point’s one-day S2 and the lower band of the Bollinger band on the four-hour chart. It’s important to keep in mind that the metal’s weakness beyond $1,655 may not hold back from attempting to surpass the $1,615 yearly low. A convergence of the middle Bollinger and SMA100 on the 4H, on the other hand, protects against an immediate XAU/USD recovery near $1,674. The key to the gold price run-up towards the $1,690 barrier lies after that, including the 10-DMA, pivot point one-day R2, and the prior yearly low near $1,678 and SMA200 on 4H.