Article by: ETO Markets

The spot gold price remains at well-known levels, with the XAU/USD pair remaining toward the lower half of Monday's range. Following Wall Street's opening, the US Dollar gained strength as equities declined rapidly, indicating a pessimistic outlook for the market. As traders prepare for the release of the US inflation figures for December, gold's price movement is predicted to stay restrained. While the core is predicted to rise by 3.8% YoY, less than the previous report, the Consumer Price Index is predicted to increase by 3.3% YoY.

The yellow metal's upward tendency is depicted on the daily chart of gold, which found support at the 50-DMA and rejected lower prices. While buyers have reclaimed part of the upper hand, negative risks still exist if XAU/USD breaks below today's low of $... This would allow for a challenge to the 50-DMA at $… before hitting the $… mark. Conversely, the initial barrier for the XAU/USD pair would be $…, and the January 5 daily high at $… would come next.