Gold price is jumping back on the bids above the $1,700 mark, as investors gear up for Thursday’s critical Consumer Price Index (CPI) data from the United States, which is expected to have a significant market impact, FXStreet’s Dhwani Mehta reports.

100DMA appears a tough nut to crack ahead of US CPI report

“Monthly US CPI is seen rising to 0.6% while the annualized inflation rate is seen softening to 8.0%. The Core CPIs are likely to ease across the time horizon, suggesting signs of peak inflation. The US Dollar could come under additional selling pressure on a softer print, as it would mean that the US Federal Reserve (Fed) could opt for a smaller rate hike in December.”

“100-Daily Moving Average (DMA) at $1,715 continues to check buyers’ enthusiasm. Bulls, however, remain hopeful amid an extension of the descending triangle breakout on the daily chart. The bullish 14-day Relative Strength Index (RSI) also suggests that Gold buyers could likely retain control going forward.”

“On the downside, the $1,700 mark could offer strong support, below which a sharp drop toward the 50DMA at $1,674 cannot be ruled out. Ahead of that, the previous week’s high at $1,683 could come to the rescue of bulls.”

See – US CPI Preview: Forecasts from 13 major banks, inflation coming down only slowly