XAU/USD – Technical Overview

On Wednesday, the U.S. will publish June’s inflation figures, measured by the annual Consumer Price Index, which is expected to reach a new four-decade high of 8.8%. Core CPI is forecast to post a 5.8% increase, slightly below the 6% May rate.

On Wednesday, Gold hitting the lowest level in almost ten months as the greenback strengthens. The XAU/USD holds a short-term negative bias from a technical standpoint, with the price posting lower lows below its main moving averages. At the same time, indicators remain in negative territory in the daily chart. However, the RSI shows oversold conditions, suggesting an upward correction or at least some consolidation before another leg lower.

Resistance level – $1750 followed by $1785
Support Level – $1700 followed by $1685


RSI – On daily chart trading in oversold zone.
MA – On hourly chart trading near 50 Days EMA

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