Gold prices pared gains on Thursday. The monthly inflation data from the US showed a modest increase in headline inflation. On a monthly basis, CPI grew 0.1% beating estimates of an unchanged print. But on a yearly basis, US inflation eased to 1.6% from 1.8% previously. The inflation report came a day after Fed Powell’s dovish comments sent the precious metal higher.
Can XAUUSD Breakout Higher?
The precious metal has been trading within the range of 1423 and 1383 levels for the past three weeks. Despite the gains earlier this week, gold failed to capitalize on the momentum. We expect the precious metal to remain range-bound within the said levels. A breakout from this range will establish the next leg in the direction of the prices.