The price of gold is solidifying within the past resistance around 1,950 with bulls longing for a rally beyond the 1,970 significant resistances for the days ahead. The US dollar held just below two-year highs against a basket of currencies on Monday, firming once the euro’s relief rally was faded, enabling the US dollar to firm up again. Nevertheless, the risk sentiment was poor at the start of the week which helped to soothe the gold price in the New York session.
Wall Street started the shortened trading week on the back foot as traders were in high anticipation of the closely watched inflation report. The Core Consumer Price Index will likely increase by 0.47% in March, Goldman Sachs said in a research note, taking the year-on-year inflation rate higher by 20 basis points to 6.6%. The data is due Tuesday. The US 10-year yield jumped 5.4 basis points on the day to almost 2.77%.
Economic events will be crucial this week, and there is an array of the goings-on in this regard that could turn out to be catalysts for the gold price. UK Employment, US Consumer Price Index on Tuesday will be the first major economic data to help unveil the health of the global economy.
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