xauusd buy cpiGold buyers turn cautious ahead of US CPI inflation test
Gold price returns to the red early Wednesday as buyers switch to the sidelines, awaiting the US Consumer Price Index data release for further insights on the Federal Reserve’s interest rate path.
Nothing changes for Gold price from a short-term technical perspective, as buyers have entered a bullish consolidation phase following last week’s symmetrical triangle breakout.
The 14-day Relative Strength Index (RSI) continues to hold well above the midline, currently near 56, suggesting that Gold price remains a ‘buy-the-dips’ trade in the coming days.
Gold price needs to find a sustained break above the $2,675 barrier on the way to the $2,700 barrier to regain upside traction.
Daily candlestick closing above that level is critical to extending the uptrend toward the December 12 high of $2,726.
Alternatively, strong support is located at the January 13 low of $2,656, below which sellers must crack the $2,640 demand area.
That zone is the confluence of the 21-day Simple Moving Average (SMA), 50-day SMA, 100-SMA and the triangle convergence, making it a powerful support.
If the downside momentum accelerates, the January 6 low of $2,615 could come to buyers’ rescue.
xausd buy 2675
suppot 2700
