Gold bulls drew little comfort from meek US CPI

Spot gold is headed for a third straight weekly drop, having erased all of its July gains at the time of writing to return to its late-June/early-July trading range.

The precious metal swiftly relinquished all of its gains immediately after Thursday’s softer US CPI.

Bullion bulls were spooked by rising Treasury yields and hawkish commentary by San Francisco Fed President Mary Daly on Thursday.

Further declines in spot gold may find support at the psychologically-important $1900 level, where also lies its 200-day simple moving average (SMA).

An upside spark may see immediate resistance around the mid-$1930 region which had capped spot gold prices back in late-June/early-July.

Gold bulls will be hoping for more dovish Fed policy signals to be uncovered from next week’s FOMC meeting minutes’ release.

Weaker-than-expected US retail sales or rising weekly jobless claims would also help their cause.