Gold price is reversing the previous rebound. As FXStreet’s Dhwani Mehta notes, XAU/USD looks south amid a bearish daily technical setup heading into the US inflation release.

XAU/USD bears eye $1,650 on US Core inflation beat

“The 14-day Relative Strength Index (RSI) in pointing lower below the 50.00 level, suggesting that there is more room to the downside. Lower highs made on the said timeframe so far this week, also add credence to the negative outlook.”

“Sellers eye a sustained break below the $1,660 demand area on a bigger-than-expected increase in the US Core CPI. The $1,650 psychological level will be threatened thereafter. The September 29 low of $1,642 will be next on sellers’ radars.”

“Bulls need a daily closing above the 21-Daily Moving Average (DMA) at $1,673. to negate the bearish momentum in the near term. The next relevant barrier is seen at the previous day’s high of $1,678, above which the $1,700 mark will be back in the picture.”

See – US CPI Preview: Forecasts from 10 major banks, price pressure easing only very slowly