XAU/USD Forecast: Gold Prices Continue to Rise for Three Days Ahead of US Inflation (CPI) Data

<p>&nbsp;Continued selling of the US Dollar and a decline in US Treasury bond yields have pushed gold prices higher.</p><p>Gold prices are trying to regain the $1,950 level ahead of the release of US Consumer Price Index data.</p><p>Gold prices have been higher near $1,940, the highest in three weeks, following continued weakness in the United States Dollar (USD) and US Treasury bond yields.</p><p>Gold buyers await US Consumer Price Index (CPI) data for the next boost.</p><p>&nbsp;</p><p><br /></p><p>US inflation data (CPI).</p><p><br /></p><p>The dovish signal given by the Federal Reserve policy makers at the beginning of this week, as well as the expectation of decreasing inflationary pressure has caused the USD to remain in a weak position throughout the week.</p><p><br /></p><p>The shift to dovish Fed expectations has also put significant pressure on US Treasury bond yields. In this context, non-yielding gold prices continued to benefit, reaching their highest level since June 20.</p><p><br /></p><p>The focus of gold investors will be on the US CPI data which is scheduled to be released tonight with the expectation that the annual CPI will increase by 3.1% in June compared to the 4.0% recorded previously.</p><p><br /></p><p>Core CPI inflation is also expected to decline to 5.0% in the reported month.</p><p><br /></p><p><br /></p><p>On a monthly basis (MoM), US CPI is likely to increase by 0.3% in June compared to 0.1% recorded in May. Core CPI monthly inflation is expected to be slightly lower at 0.3% compared to 0.4% previously.</p><p><br /></p><p>In addition, several Federal Reserve officials will give important speeches to redefine the policy path of the US central bank, with important implications for the US Dollar and gold prices.</p><p><br /></p><p><br /></p><p>So far today the price of gold is seen hovering at the highest level ever recorded during this week around $1935-$1938.</p><p><br /></p><p>If tonight's CPI data release can provide a positive sign for the US, then the "Seller" focus will be on the $1950 price level. However, if otherwise the price of $1,919 will be the focus of "Buyer" to get the lowest price.</p>