Gold Price Technical Analysis: Gold price yielded a daily closing below the critical 50-Daily Moving Average (DMA), now at $1,860.
- Gold price rebounds from week lows at $1,847 as the US Dollar retreats.
- Hot United States Consumer Price Index could boost hawkish Federal Reserve bets.
- Gold price closed Monday below the 50-Daily Moving Average; more losses in the offing.
At the time of writing, Gold buyers continue to defend the key $1,847 support area. The 14-day Relative Strength Index (RSI) remains flatlined below the 50.00 level, keeping the downside bias intact in the Gold price.
A hot US Consumer Price Index print could fuel a fresh downswing in the bright metal, breaking below the abovementioned support. Gold bears will target the January 5 low of $1,827 on sustained selling.
Should the US inflation data revive the dovish Federal Reserve outlook, Gold bulls will get a fresh life, motivating them to embark on a recovery toward the $1,877 supply zone.
The next upside target is envisioned at the February 9 high at $1,890.20. The 100 and 200-DMAs bullish crossover could help reduce the pain in the Gold price.
Spot Gold Extra decline not ruled out
Gold prices started the week on the defensive. Despite the small uptick in open interest, there is room for further weakness in the very near term and with the next target of note at the key $1835 — $1812 region per ounce troy.
