Gold moves sideways ahead of US inflation data and before the release of the FOMC Minutes. These are seen as high-impact events, so you should be careful as the volatility will be high. Gold is highly likely to register sharp movements later today.
XAU/USD stands at 1,761.64 level at the time of writing below 1,769.42 yesterday's high. It's still trapped within a range pattern, so we'll have to wait for a valid breakout before taking action.
The US Consumer Price Index is expected to increase by 0.3% in September after a 0.3% growth in August, while the Core CPI may register a 0.2% growth in the last month versus a 0.1% growth in August.
A hawkish FOMC Meeting report could boost DXY and could force gold to slip lower.
XAU/USD Little Changed
Gold stayed within the ascending pitchfork's body after finding demand on the 1,750.74 level. It continues to pressure the 1,761.45 weekly pivot point. The pressure is likely to remain high as long as the rate stands below 1,770.58 static resistance.
It's also trapped between the lower median line (lml) and the inside sliding line (sl). An upside continuation could be signaled by a valid breakout above 1,777.12, the weekly R1. On the other hand, a potential drop could be announced if the yellow metal drops and stabilizes below the 1,750.74 level.
Gold Prediction
Jumping and closing above the weekly R1 (1,777.12) is seen as a potential buying opportunity. Still, you should be careful that a new false breakout above that level could send the rate down.
