XAU/USD – Could US CPI data trigger a major breakout in gold?

• Traders appear bullish ahead of CPI release
• A number of resistance levels above
• Could a stronger inflation report push gold below $1,900?

Gold is edging higher again today but there is clearly an element of caution in the move.

Perhaps traders are hopeful of a favorable CPI figure from the US but they’re clearly not that confident with the price remaining below $1,940 where it has repeatedly run into resistance.

Gold Daily

Source – OANDA on Trading View

A break above here today could be a bullish signal, although there remain many more obstacles ahead including $1,960, $1,980 and $2,000 before traders will feel confident that the yellow metal is back.

A stronger inflation report could push it back towards $1,900 which has held as support until now, mostly. A break of this could be a very bearish development.

The key levels below may be seen around $1,850-$1,870 around the 200/233-day simple moving average ban which also coincides with prior support and resistance around $1,860. That said, it is worth noting that it hasn’t been particularly responsive to this moving average band in the recent past.

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