Gold (XAUUSD) reversed upwards from 2,600 USD

XAUUSD price has completed a downward correction, with the chart showing an upward reversal. The market will focus on the US Producer Price Index (PPI) data. More details and insights are available in our XAUUSD analysis for today, 11 October 2024.

XAUUSD forecast: key trading points

• Market focus: market participants are awaiting today’s US inflation statistics, with the Producer Price Index (PPI) scheduled for release
• Current trend: the pair is trading in an uptrend
• USD forecast for 11 October 2024: 2,630 and 2,670

Fundamental analysis

XAUUSD quotes have completed a downward correction, receiving active support from buyers near 2,600 USD. Gold continues to attract demand from global central banks and investors, with escalating geopolitical tensions in the Middle East adding to its appeal.

Yesterday’s US Consumer Price Index (CPI) data broadly aligned with market expectations. The Producer Price Index (PPI) is due today. A weaker-than-expected reading could exert pressure on the USD and help strengthen gold. Conversely, a higher-than-expected figure would support the US dollar, potentially pushing XAUUSD prices lower.

XAUUSD technical analysis

Gold appears to have completed its decline as part of a downward correction. At the close of trading yesterday, a bullish, engulfing candlestick reversal pattern formed on the daily chart, indicating the downward movement is complete and the price is poised to rise.

The short-term XAUUSD price forecast suggests that another decline to 2,600 USD could follow if bears push the quotes below the 2,630-2,625 USD support area. Conversely, if bulls hold the price above 2,630-2,625 USD, further gains to 2,670 USD are likely. This scenario currently seems the most probable.

Summary

Gold prices have reversed upwards from the support area near 2,600 USD. Today’s US inflation statistics could impact further gold price movements.