Gold Price Forecast: XAU/USD bulls pause around $1750 amid quiet start to Thursday

Update: Gold struggles to extend the strongest rebound in three months near $1,750 during a subdued start to Thursday’s Asian session.

Gold rose the previous day as the US Consumer Price Index down for the first time in four days, despite initially refreshing multi-day top.

After suffering heavy losses at the start of the week, the XAU/USD pair closed virtually unchanged on Tuesday and managed to stage a decisive rebound on Wednesday.

The US Bureau of Labor Statistics reported that the Consumer Price Index stayed unchanged at 5.4% on a yearly basis in July.

Commenting on the inflation report, Dallas Fed President Robert Kaplan noted that CPI numbers were consistent with the Federal Reserve’s inflation outlook.

The benchmark 10-year US Treasury bond yield, which closed in the positive territory in the previous five trading days and gained more than 10%, reversed its direction on Wednesday.

However, the Relative Strength Index on the daily chart is still below 40, suggesting that the recent recovery could still be seen as a technical correction rather than a reversal of short-term direction.

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EUR/USD struggles to extend the previous day’s rebound from a yearly low of around 1.1745 during early Thursday morning in Asia.

GBP/USD trades near a daily high of 1.3887, as markets good mood boosted demand for the high-yielding pound.

The currency major pair dropped to the lowest since March, also the year’s bottom, on Wednesday.

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