US consumers estimate inflation would ease below 4%

Later, the University of Michigan (UoM) Consumer Sentiment on its Final reading exceeded estimates of 64.6 and rose by 64.9. The survey conducted by the University of Michigan updated inflation expectations, with a one-year horizon estimated at 3.9%, while for a 5-year rose to 2.9% compared to the preliminary 3.0%,

Gold pressured by high US Treasury bond yields

Meanwhile, US Treasury bond yields continue to be headwinds for Gold. The US 10-year Treasury bond yield continues to edge higher, almost four bps, and yields 3.540%, underpinning the greenback. The US Dollar Index (DXY), which tracks the buck’s performance against a basket of six peers, advanced 0.22%, and reclaimed the 102.000 mark at 102.051.

Gold Technical Analysis

Even though the XAU/USD remains slightly positive in the week, a doji emerging after a two-and-a-half-month rally from $1,616.71 to $1,949.16 suggests it could end. As XAU/USD drops below Thursday’s close, it has opened the door for further downside, but a daily close below the weekly low reached on Monday at $1,911.49 is needed to pave the way for a dip to $1,900. If that scenario plays out, the next support area would be the confluence of the January 18 low and the 20-day Exponential Moving Average (EMA) at around $1,896/97. Conversely, XAU/USD’s reclaiming $1,930 would keep Gold sideways.