Gold price hovers below $1,800 but well above the bearish 50-Daily Moving Average (DMA), now at $1,785. The yellow metal could defy the bearish odds if the US inflation shows signs of peaking, FXStreet’s Dhwani Mehta reports.

Bear cross to challenge XAU/USD bulls ahead of US inflation

“A failure to sustain above 50 DMA at $1,785 will revive bearish interest, triggering a drop towards Monday’s low of $1,771, below which the $1,765 demand area will come into play.”

“The August 3 high of $1,754 and the $1,750 psychological level could be tested if the US CPI surprises on the upside and jacks up big Fed rate hike bets.”

“With the 100 DMA having crossed 200 DMA for the downside, a bear cross is confirmed, which keeps sellers hopeful.”

“Gold bulls need acceptance above the $1,800 mark to continue with their recovery momentum. Bulls will then guard the July 5 high at $1,812 should the rebound gain traction.”

See – US CPI Preview: Forecasts from nine major banks, soaring inflation to ease off in July