Article by: ETO Markets

Gold prices (XAU/USD) remained stable during the Asian trading session on Monday, showing no bias. Key U.S. inflation data released last Friday, the core Personal Consumption Expenditures (PCE) Price Index, grew by the expected 0.1%, indicating that inflation is steadily easing. As a result, gold prices initially rose but later fell due to the increase in U.S. Treasury yields. 

In addition, as a major gold-buying nation, China's unexpectedly lower-than-expected non-manufacturing PMI released on Sunday might affect gold demand and weaken gold prices. Furthermore, the disastrous debate between President Joe Biden and his Republican opponent Donald Trump heightened political risk and uncertainty, providing support for gold/USD. Several significant U.S. economic data release this week are expected to impact gold prices, and traders are waiting for new economic data to determine their trading strategies and directions. 

From a technical perspective, gold/USD prices are still fluctuating within a triangular range, with $… being a key resistance level that gold sellers have consistently struggled to break through. Although it currently appears to be in a downtrend with lower highs, gold bulls still could push the price back above the 50-day Simple Moving Average (SMA) of $…and reverse the trend, targeting the $…-$… range. For gold sellers to maintain control, they must overcome the significant $…barrier, followed by the two-month low of $….