Title: Gold Price Forecast: XAU/USD retreats towards $1,785 key support ahead of US inflation
Aug 10, 2022 02:21AM ET
The gold price takes bids to renew its intraday low, reversing its monthly high.
The U.S. dollar follows in the wake of sluggish yields and uncertain market sentiment ahead of July's U.S. CPI.
Softer U.S. inflation could combine with technical factors to favor XAU/USD bulls, targeting $1.805.
The gold price (XAU/USD) reverses from monthly highs, snapping a two-day bullish trend, as sellers target the $1,790 level early Wednesday morning in Europe.In this way, the precious metal shows the market's anxiety ahead of U.S. inflation statistics, amid growing hawkish bets on the Federal Reserve's (Fed) next move.
In addition to pre-CPI caution, fears of an economic slowdown are also weighing on the XAU/USD quote.
That said, fears of an economic slowdown intensified after Russia announced that it was cutting off the flow of oil due to a blockade of the Druzhba pipeline that supplies black gold. According to Reuters reports, "Russia has reportedly suspended oil flows through the southern section of the Druzhba pipeline due to problems with transit payments."