Gold Price Trading Between Clear Bull Channel Re-enforce By The Daily Simple Moving Average

Gold prices recovered in early Asia trading Thursday after U.S. session declined in the wake of the stronger-than-expected U.S. inflation report. The Consumer Price Index rose 4.2% year over year. Expectations were for a 3.6% increase. 

The stronger than expected headline and core inflation numbers reported by the Labor Department buoyed U.S. yields, which drop up the U.S. dollar. The stronger dollar weighed on gold prices generating headwinds for the yellow metal.

Technical Analysis

The $1,850 level is now the psychologically significant figure that has attracted attention more than once. Because the daily 200-SMA is just above there.

Gold price is very likely to continue trade between the bullish channel with focus now looking at the daily 100-SMA $1,795 also the up trendline support level.