- Gold price is aiming to capture the $1,800 hurdle amid sheer optimism in the market.
- Economists at Danske Bank are of the view that the risk of persistent inflation has not vanished.
- Wednesday’s Retail Sales data is seen higher at 0.9% despite a decline in the inflation data.
Gold price (XAUUSD) has climbed above the critical resistance of $1,770.00 in the early Tokyo session. The precious metal has become a darling asset for market participants in the past week after the US October inflation report disclosed easing price pressures. The gold prices are set for further rally towards the crucial resistance of $1,800.00 as a decline in the inflationary pressures is promising that the Federal Reserve (Fed) won’t look for hefty rate hikes in its December monetary policy.
Meanwhile, a decline in the US dollar index (DXY) after plummeting US Consumer Confidence has also strengthened the gold’s rally. The sentiment data dropped to 54.7 vs. the projections of 59.5. Going forward, the price action in the US bond market will be keenly watched after an extended weekend.
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