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Gold price trades back-and-forth

Gold price (XAU/USD) struggles to extend its recovery as investors remain anxious ahead of US inflation data for October, which will be published at 13:30 GMT. The precious metal consolidates with investors expected to wait until after the release before building fresh positions, as the inflation data will provide them with greater clarity about the monetary policy outlook. Economists have projected a steady growth pace in the core Consumer Price Index (CPI) while the headline inflation is seen easing. A persistent US inflation report would prompt expectations of further policy-tightening by the Federal Reserve (Fed). The Fed is committed to bringing down inflation to 2% in a timely manner and it won’t hesitate to raise rates further if it thinks inflation has become entrenched.

Gold price is struck in a tight range ahead of the release of the US inflation data. The corrective move in the precious metal has been extended to near 38.2% Fibonacci retracement (plotted from October 6 low at $1,810.50 to October 27 high at $2,009.50) around $1,933.80. The near-term outlook for Gold has turned bearish as it is trading below the 20-day Exponential Moving Average (EMA) while the 50-EMA near $1,938.00 continues to offer support.