• Greenback showed a surprise fall despite a four-decade high inflation data.
• Fed policymakers’ speeches are largely eyed for fresh impulse.
• Omicron fear amid Experts warning “Dark Days Ahead for Hospitals.” weigh on the yellow metal.

Gold is flat against the greenback during the Thursday Asian session after refreshing multiday high on Wednesday, The rationale behind the yesterday’s move can be related to the fall of the US Treasury yields despite a four-decade high inflation data.

US CPI had a jump and matched YoY forecast of 7.0% and is high than 6.8% previous reading. Elsewhere, the monthly figure had a rise of 0.5% versus 0.4% expected but less than 0.8% prior readout.

Despite CPI being the highest since 1982, traders don’t see it urgently shifting an already hawkish Fed too much. With at least three rate hikes already in the market price, few investors pared bets on further dollar gains.

After the US inflation data release, Federal Reserve Bank of St. Louis President James Bullard said, “Four rate hikes in 2022 now appear to be on the table and, in the face of high inflation; a rate hike in March seems likely.”

Fed Board of Governors’ member and incoming Vice Chairman of the FOMC Lael Brainard said, “Returning inflation to the 2% target is the ‘most important task’ facing the US central bank.” The FOMC member said in remarks prepared for delivery on Thursday to a Senate panel considering her for promotion to the vice-chair position.

Talking on the virus woes, Rising cases of Covid recent variant Omicron and Experts warning weigh on the market sentiment and the yellow metal. Experts warn “Replaces Delta, ‘Dark Days Ahead for Hospitals.”

As per a recent news, “The most recent CDC Nowcast data predict that omicron is dominating caseloads in US.”

“The omicron variant represents about 98% of cases, Centers for Disease Control and Prevention Director Rochelle Walensky said Tuesday. That number is based on data for the week ending Jan. 8 and is a significant increase from just two weeks prior, when omicron accounted for 71.3% of cases.”

XAU/USD 4 Hour Chart:

Support: 1817.6 (S1), 1809.4 (S2), 1804.1 (S3).

Resistance: 1831.0 (R1), 1836.3 (R2), 1844.5 (R3).

The yellow is trading flat, the fed policy maker’s speech ahead and the initial jobless claims will be largely eyed for fresh impulse. We expect a short term bullish trend for XAU/USD.