XAU/USD Aims to Cross $2,050 Hurdle with Easing US Inflation

Gold price (#XAUUSD) has faced mixed sentiment and sluggish US dollar ahead of the US inflation data. Despite the challenges, the progress on the US debt ceiling negotiations and optimism surrounding Asia have underpinned the #XAUUSD run-up. Technical analysis suggests that the upper band of the Bollinger on the daily chart joins Pivot Point one-day R2 and the previous monthly high to cite the $2,050 level as an important upside hurdle for the #XAUUSD.

The $2,025 support confluence including Fibonacci 23.6% on one month, Fibonacci 61.8% on one-day and the lower band of the Bollinger on the hourly chart is also a crucial level to watch. In terms of gold futures markets, traders added around 3.8K contracts to their open interest positions on Tuesday, adding to Monday’s build.

Volume, in the same line, went up by around 20.8K contracts after two consecutive daily drops. The continuation of the weekly recovery in gold appears likely on the back of Tuesday’s advance amidst rising open interest and volume, with the yellow metal remaining focused on the 2023 peak near $2070 recorded earlier in the month.

TRADE IDEA DETAILS
CURRENCY PAIR: #XAUUSD
CURRENT TREND: Uptrend (3-week)
TRADE SIGNAL: ↗️Buy
👉ENTRY PRICE: $2,035
✅TAKE PROFIT: $2,080
❌STOP LOSS: $2,015

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