Gold Price Forecast: XAU/USD edges high on US Dollar weakness, ahead of US CPI

• Gold prices (XAU/USD) see a modest increase of 0.30%, trading at $1944.95, influenced by the weakening US Dollar and declining US Treasury bond yields.
• The market's focus is on the upcoming US Consumer Price Index (CPI) release, with expectations of a slight cooling in inflation rates
• Gold traders are also paying attention to upcoming speeches from Federal Reserve officials.

Gold price encounters some buyers and rises some 0.30% on Monday, late in the New York session, amidst overall US Dollar (USD) weakness, sponsored by a drop in US Treasury bond yields. Therefore, XAU/USD is trading at $1944.95 after hitting a daily low of $1928.10.

XAU/USD gains as market eyes upcoming US inflation data and geopolitical developments

A scarce economic docket in the United States (US), witnessed the majority of traders looking for the release of the Consumer Price Index (CPI) in the US. Before that, a poll from the New York Fed showed that inflation expectations for one year are cooling, while prices in October are expected to drop from 3.7% to 3.3% YoY, revealed forecasts. Core CPI is estimated to lie at 4.1%, unchanged to previously recorded data.

In the meantime, geopolitical risks remain abated according to the market reaction, even though fighting in the Gaza Strip between Israel and Hamas continues. However, an escalation of the conflict remains and could be bullish for the yellow metal.

In the meantime, Gold traders will get some cues from Federal Reserve speakers during the week. On Monday, Governor Lisa Cook failed to provide any headlines in regard to monetary policy, but Tuesday´s agenda would be led by Fed Vice-Chairman Philip Jefferson, John Williams from the New York Fed, and Lisa Cook.

On Wednesday, US President Joe Biden and his Chinese counterpart, President Xi Jinping, will meet at the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco. Remarks are expected regarding military cooperation.

XAU/USD Price Analysis: Technical outlook

XAU/USD is neutral to upward biased; it dipped to a daily low of $1928.10 on Monday, though it resumed its uptrend with buyers eyeing the 20-day moving average (DMA) at $1970.81. On its way toward the latter, buyers must reclaim $1950, followed by the 20-DMA and the $2000 mark. On the other hand, Gold could shift bearish if it drops below key support levels, like the 200-DMA, 100-DMA, and 50-DMA, each at $1935.45, $1927.23, and $1923.11, respectively.