Gold prices remain on the back foot amid anxious hours of early Thursday as markets wait for the ECB and the US Consumer Price Index (CPI) data. Although the ECB is less likely to become a major catalyst, the anticipated optimism of the bloc’s policymakers could offer intermediate bounce to gold prices. However, a stronger-than-expected beat of the US inflation data won’t be taken lightly and can drag the yellow metal on release. It should, however, be noted that ascending support line from mid-May and late April, respectively around $1,879 and $1,871, could probe sellers whereas 200-SMA near $1,848 and May 10 top close to $1,845 adds to the downside filters.
Meanwhile, an upside clearance of the monthly resistance line, close to $1,900, will aim for the recent high of $1,917. In a case where the gold buyers keep reins past $1,917, October 2020 levels near $1,933 should offer an intermediate halt during the rally targeting the yearly peak of $1,960. To sum up, today is a test for the gold buyers who seemed to have tired of late.