The same macro pressure also took a toll on silver. Silver is more responsive than gold, as it has strong drivers both as a safe haven and in industrial uses. The stronger US dollar can negatively affect silver. But silver can still find support if demand from the industry persists.
The market is now awaiting US CPI data today. Hotter-than-expected inflation data could support more bets on Fed rate hikes and push gold lower. On the other hand, softer CPI data could give gold some short-term relief.
Gold Price Forecast – Breakdown Points to Deeper Support
The daily chart for spot gold shows that prices remain under pressure after the breakout from the 200-day SMA at $4,400. This breakout was significant, as it also broke the ascending broadening wedge pattern. This targets $3,900 to $4,000 as the prime target of this breakout.
The RSI indicator is now reaching the buy zone ahead of the inflation data release. But the price remains under pressure and requires some catalyst to rebound from this region.
