Gold sellers take a brief pause ahead of US CPI release

Gold prices managed to hold above the $3200 mark for the second week straight as sellers took a brief pause. The yellow metal declined by more than 2% in Monday's trading session after USA and China mutually agreed to slash down their respective high import duties to 30% and 10% for 90-days during the trade talks held over the weekend in Geneva. The bilateral decision provided temporary relief from the intense trade dispute, lifting up the market sentiment and dampening demand for the safe-haven asset. 
The 10-year treasury yields inched higher after the tariff rollback as it diminished concerns over US recession along with the expectation for a rate cut. Furthermore, US Dollar exerted pressure on Gold prices as it appreciated by more than 1% against its major peers, nearly reclaiming the 102 mark. 
Despite the modest recovery witnessed in the bullion on Tuesday's early session, the weakness still persists. Traders are now focused on the upcoming Consumer Price Index report to gain insights into how it will influence the Fed's decision and price movement. 

XAU/USD TECHNICAL OVERVIEW


Technical Structure: Gold prices concluded Monday's session with a strong Bearish Candle on the Daily timeframe and ended up below 20-Day Simple Moving Average, indicating that bears have the upper hand. However, it is holding well above the 200-DSMA on the 4-Hour chart, consolidating within a narrow range. The 1-Hour chart showcases a range breakout of the price, hinting at a temporary upside. 

Intraday Trend/ Intraday Strategy: The intraday trend remains Neutral to Bearish and favours the approach of Buying on Supports and Selling at Resistance levels. 

Weekly Trend: Neutral 

Major Support: 3228, 3215, 3207
Major Resistance: 3260, 3272, 3280

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