Gold Price Forecast: XAU/USD steady around $1,850 after strong US inflationary data

• XAU/USD broke above a 4-month downslope resistance trendline, aiming towards $1,900.
• XAU/USD rallied on higher US consumer inflation above 6%, the highest in 30 years.
• Gold, US bond yields, and the US Dollar rallied after the US inflation report.

Gold (XAU/USD) edges lower as the Asian session begins, down some 0.18%, trading at $1,849.30 during the day at the time of writing. On Wednesday, the yellow-metal spiked as high US inflation figures crossed the wires, reaching a daily high at $1,868.61, easing the upward move later, ending the New York session at $1,852.67.

It is worth notice, that US T-bond yields and the US Dollar followed the XAU/USD spot footsteps, finishing in the green. The 10-year benchmark note rose twelve basis points, sitting at 1.57%, recovering this week's losses. Meanwhile, the US Dollar Index, a measurement of the greenback's value against a basket of six peers, advanced 0.98%, closed at 94.87.

US consumer inflation tops 6.2%, the highest level since 1990

During the New York session, the  US Bureau of Labor Statistics (BLS) featured the Consumer Price Index (CPI) for October, which surged 6.2% on a yearly basis, up from 5.4% in September, leaving behind the 5.3% estimations by economists. Further, the Core CPI reading, which excludes volatile items like energy and food, expanded by 4.6% in the same period, higher than the 4.8% foreseen by the market. 

That said, the US Dollar rallied, US T-bond yields spiked, and gold shot through the roof, as expectations that the US central bank would need to accelerate the bond taper process amid long-lasting inflation. Also, the US 2-year yield sits at 0.519%, implying that market participants are pricing in a Fed rate hike by June of 2022.

The US economic docket will be light on Thursday. However, on Friday, the University of Michigan Consumer Sentiment Index for November could offer gold traders a fresh catalyst to take action at. Further, the US JOLTS Job Openings will be unveiled. Later, New York Fed's President John Williams will speak.

XAU/USD Price Forecast: Technical outlook

Daily chart

The non-yielding metal briefly broke a 4-month downslope resistance trendline, reaching a new daily high at $1,868.61, but retreated the move, sitting on the top of the abovementioned. The daily moving averages (DMA's) are long left behind the spot price, sitting around the $1,780-95 area, with the 50-DMA aiming higher, while the longer time-frames one, directionless. 

Further, the Relative Strength Index (RSI) is at 67, beneath overbought levels, confirming the upward bias. However, for XAU/USD bulls to accelerate an attack towards $1,900, they will need a daily close above the June 3 low at $1,864.98. In that outcome, the following resistance area would be the psychological $1,900.