Forecast for the price of gold: XAU/USD advances toward $1,800 on a decline in consensus for US inflation

The price of gold (XAU/USD) has slowed down since reaching a peak over $1,790.00 during the Asian session. After a sharp rally, the precious metal is stabilizing in a higher market profile but the upward energy has not yet been exhausted. On the back of reduced projections for the US Consumer Price Index, the shiny metal is moving closer to the psychological resistance level of $1,800.00. (CPI).

According to market expectations, the US Consumer Price Index (CPI) will drop from its previous release of 9.1 percent to 8.7 percent. The consensus has decreased by 40 basis points, which is supported by the recent decline in oil prices. On account of growing recessionary fears and diminishing supply concerns, black gold lost its luster. This may encourage the Federal Reserve (Fed) to set interest rates a little lower this time.

Investors should be aware that a temporary decrease in price pressures does not signify that the Federal Reserve's (Fed) difficult work is finished. For the inflation rate to assert that the price pressures have subsided, a string of downward changes must be visible.

After receiving bids in the lower part of the Rising Channel that was established on a four-hour scale, gold prices have significantly recovered. The upper part of the aforementioned chart pattern is drawn from the high of July 22 at $1,739.37, and the lower part is drawn from the low of July 27 at $1,711.55.

The 20-period Exponential Moving Average (EMA) at $1,775.50 has been held by the bulls in gold. Although there has been a correction, the 50-EMA at $1,767.11 has held steady, showing that the short-term trend is incredibly optimistic.

Additionally, the Relative Strength Index (RSI) (14) has made an attempt to break above 60.00; if this is successful, it will support gold bulls even more.