Comments by Fed Governor Lael Brainard are undermining the performance of the greenback in Monday’s trading session.
Gold price is starting to push hard against the $1881 resistance mark after Brainard sought to explain away the rising consumer inflation data from two weeks prior.
Reuters reported Brainard as saying that the recent rise in inflation was due to price increases linked to a surge in demand as prices rebound from pandemic lows.
Brainard also sees supply chain bottlenecks as a contributing factor to the US inflation data, reiterating that the Fed had the tools to guide inflation back down if it went persistently above the apex bank’s goals.
These comments did nothing to help the greenback, which remains under pressure this Monday on the XAU/USD pair.
Technical Outlook for Gold Price
Today’s candle is challenging the 1881.68 resistance. If bullish pressure uncaps this resistance, we could see a run towards the 1900.95 psychological resistance. Above this level, 1930.88 forms an additional price barrier before extra resistance is seen at 1960.00.
On the other hand, a rejection at 1881.68 allows for a pullback to 1860.77. A further decline in gold price targets the price wall support found between 1840.00 and 1826.00, with 1815.20 remaining as a barrier before 1800.00 and 1789.49 come into the picture.