GOLD_, H4: Gold price was traded lower following prior retracement from 1828.40. MACD which illustrate diminished upward momentum suggests gold price to be traded lower in short-term.

Resistance level: 1828.40, 1841.80

Support level: 1818.90, 1804.10

As the market expects inflationary pressure to rise rapidly as global economy recovers from Covid-19 pandemic, investors shifted their portfolio from risky assets into safe-haven gold. In the US, supply chain disruption, raw material shortages and ongoing stimulus from US government is expected to lift inflation rate further. Last Friday, the US Congress has approved a $500 billion infrastructure plan which is expected to create more jobs that may reflect higher consumer spending and inflation rate in the near-term. However, Fed Chair Jerome Powell reiterates that rising inflation in the US are contributed by external factors and it is likely to slow down in the near-term towards their targeted rate of 2%. Powell also emphasized that it is too early to call for a rate hike and they need to monitor future economic data before decisions were being made. As investors expects Fed to maintain current lending rates till at least end of 2022, rising inflation will led to higher risk of stagflation as well as lower purchasing power. Thus, in order to safe guard their capital from inflation risk, investors turn towards safe-haven assets such as gold for the past week.