• Gold price extended its losses in the session, down by 0.22%.
• The University of Michigan’s Consumer Sentiment improved, while inflation expectations jumped for 2023.
• Gold Price Forecast: Daily close below the 50-EMA could expose Gold to further selling pressure.

Gold price remains firm at around $1860 after hitting a week-to-date new low of $1852.45 on Friday due to speculations that the US Federal Reserve would raise rates by 25 bps in the next couple of meetings, as money market futures showed. A bid in the US Dollar and US Treasury bond yields reaching fresh 5-week highs capped Gold’s advancement. At the time of writing, XAU/USD is trading at $1858.68, above its opening price by 0.20%.

XAU/USD spiked toward its daily highs on US consumer sentiment

Wall Street continues to trade mixed, with the Nasdaq 100 being the outlier, losing more than 0.50%. A poll by the University of Michigan (UoM) reported that American Consumer Sentiment exceeded estimates of 65 and rose by 66.4, showing an improvement in financial conditions. Meanwhile, inflation expectations for a one-year horizon increased by 4.2% from 3.9% reported on January’s final reading, while for a 5-year horizon, it stood unchanged at 2.9%. XAU/USD’s reacted on the data, reaching as high as $1866.80, though retraced towards current prices.