Gold Price Forecast: XAU/USD loses traction below $1,950 ahead of the US CPI data

Share:

• Gold price loses ground around $1,945 ahead of the US CPI data.
• The geopolitical conflicts in the Middle East could boost safe-haven assets like gold.
• The immediate resistance level is seen at $1,953; the initial support level will emerge at $1,934.

Gold price loses momentum during the early European session on Tuesday. Market players will closely monitor the highly-anticipated US Consumer Price Index (CPI) due later on Tuesday. The headline inflation measure is estimated to grow by 0.1% MoM and 3.3% YoY. The core inflation figures are forecasted to rise by 0.3% MoM and 4.1% YoY. At the press time, gold price is trading around $1,945, losing 0.10% on the day.

On Monday, the White House said US President Joe Biden and Chinese President Xi Jinping are set to meet this week on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. However, the renewed tension between the US and China might exert pressure on the US Dollar (USD) and benefit the gold price.

Furthermore, the geopolitical conflicts in the Middle East remain in traders’ focus. The rising tension could boost the safe-haven flow demand and lift the yellow metal.

Gold Price (XAU/USD) Technical Outlook

According to the daily chart, gold price will meet the immediate resistance level near a high of September 1 at $1,953. Further north, the next barrier is seen at the middle line of the Bollinger Band at $1,970, followed by a psychological mark at $2,000. On the flip side, the initial support level will emerge near the lower limit of the Bollinger Band at $1,934, en route to the round figure at $1,900 and finally at $1,885 (low of August 17).