Gold Price was knocked down to its lowest level since mid-June at $1,812. As FXStreet’s Dhwani Mehta notes, the yellow metal remains exposed to downside risks.

XAUUSD awaits US PCE inflation for a sustained move lower

“The Core PCE inflation is seen easing to 4.7% YoY in May vs. 4.9% previous. Softer core figures could suggest that inflation is peaking, prompting investors to believe that Fed could go slow on its tightening cycle. Thus, gold could attract fresh demand in line with expectations or below forecasts reading, as it would down the dollar alongside the yields.”

“Wednesday’s low of $1,1812 could offer immediate support to bulls, below which the June 15 low of $1,808 will be under threat, as a breach of the $1,800 mark remains on the table.”

“Any upside attempt would need buyers to recapture the pennant support turned resistance, now at $1,824. Acceptance above the latter will fuel a decent bounce towards the $1,836 area.”