Traders in gold (XAU/USD) maintained the previous day’s bearish tilt on Friday’s Asian session, revisiting the intraday bottom at roughly $1,845 as risk aversion prevailed. Although the gold market appears to be stuck around $1,850 per ounce, ordinary investors do not appear to be giving up on the precious metal just yet.

The risk-off mentality could be linked to growing concerns that rising price pressure will stifle global economic development; also, the cautious tone ahead of major inflation data from China and the US is dragging on the XAU/USD. It’s worth mentioning that despite announcing the end of Quantitative Easing (QE) and a 0.25 percent rate hike in July, the European Central Bank (ECB) failed to boost market confidence.

However, ahead of today’s US Consumer Price Index (CPI) statistics, the White House has already warned of increased inflation, while the World Bank (WB) and the Organization for Economic Co-operation and Development (OECD) have emphasized the worldwide recession’s severity. Furthermore, because to the recurrence of covid instances in China, activity limits and mass testing have been reinstated, weighing on market sentiment and gold prices. Reported by FXStreet.

The first level resistance is seen at this week’s high of $1,862 and then at the June high of $1878. First support is seen at week’s low of $1,838 and then at the June low of $1,830.

Analyst: Ms.Teang Riya, Independent Analyst