As it recovers from a new monthly low ($1617), the price of gold begins a series of higher highs and lows. The precious metal may also try to test the 50-Day SMA ($1691) as it reverses ahead of the yearly low ($1615).
As US Treasury yields retreat from recent yearly highs, the price of gold appears to be defending the September range. However, precious metal may continue to have a negative slope in the moving average, which would basically mimic the price movement from earlier this month.
In the near future, the revision to the US Personal Consumption Expenditure (PCE) may force the Federal Open Market Committee (FOMC) to maintain a hawkish forward guidance because the core rate, the Fed's preferred measure of inflation, is anticipated to rise to 5.2% in September from 4.9% per annum the month before, and because evidence of persistent price growth may support US yields by increasing pressure on Chairman Jerome Powell and Co. to pursue a highly restrictive policy.
Given that the FOMC intends to implement higher interest rates throughout the remainder of the year, developments coming out of the US may continue to weigh on the price of gold; however, the precious metal may attempt to test the 50-Day SMA ($1691) before the Fed announces its interest rate decision on November 2 as it reverses ahead of the yearly low ($1615).
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