XAU/USD remains sensitive to US yields as focus shifts to CPI
Gold managed to build on the previous week’s gains and rose decisively on last week Monday. The break above $1,700 attracted technical buyers on Tuesday. This caused XAU/USD climbed to its highest level since September 12 at $1,730 mid-week. Renewed dollar strength ahead of the weekend, however, caused the pair to erase a large portion of its weekly gains. September inflation data from the US could trigger a significant market reaction and help the precious metal determine its next direction. In this article, we’ll detail Gold Weekly Technical Forecast for Week 41, 2022.
Gold technical outlook
The Relative Strength Index (RSI) indicator on the daily chart declined to 50 toward the end of the week. This suggests that gold has lost its bullish momentum and turned neutral in the near term. In case XAU/USD manages to hold above $1,700, it is likely to face initial resistance at $1,710 (Fibonacci 50% retracement of the latest downtrend) before $1,720 (50-day SMA). With a daily close above the latter, the pair could test $1,730 (Fibonacci 61.8% retracement) and target $1,760 (100-day SMA) if it manages to flip it into support.
On the downside, $1,690 (Fibonacci 38.2% retracement) aligns as interim support before $1,680 (20-day SMA). If gold falls below the latter and starts using it as resistance, it could extend its slide toward $1,665 (Fibonacci 23.6% retracement).
Gold sentiment poll
Despite the decline witnessed in the second half of the week, the Instaforex Nigeria Poll shows that experts expect gold to remain bullish in the near term with the one-week average target sitting at $1,710. Similarly, the one-month outlook also points to a bullish tilt.
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