Title: Gold Price steadies near $1,725 as falling wedge, US inflation tease bulls at yearly low
Jul 13, 2022 07:45AM ET
Gold Price struggles around 10-month low, stays inside a bullish chart pattern.
Risk-on mood fades as traders approach key US inflation data for June.
Mixed concerns over China, recession also confuse XAUUSD traders.
Gold Price (XAUUSD) retreats to $1,725 heading into Wednesday’s European session. In doing so, the precious metal fades the early-day rebound from the yearly low while staying inside a weekly falling wedge bullish chart pattern. That said, XAUUSD's weakness could be linked to the downbeat performance of Eurostoxx 50 Futures, as well as a rebound in the US Dollar Index (DXY). However, mixed concerns surrounding China’s covid conditions and economic growth, as well as fears of inflation, test the gold traders ahead of the US Consumer Price Index (CPI) for June.
Gold Price awaits US inflation
Gold remains directionless as traders remain cautious ahead of the key US inflation, especially after the record high of the one-year US inflation expectation and hawkish Fed bets. Also highlighting the importance of the US CPI is the IMF’s recent downward revision of economic forecasts and mostly priced in a 75 bps rate hike from the Fed.