XAU/USD Forecast: Gold price looks for direction as focus shifts to inflation data

• Gold price remains sideways as the market awaits US inflation data for further action.

• The US Dollar corrects marginally, while the broader bias remains bullish due to US economic resilience.

• Fed policymakers are expected to maintain the status quo on September 20 as US inflation is falling and the economy is better balanced.

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Gold price (XAU/USD) struggles to find a direction as investors await the US Consumer Price Index (CPI) data for August. The precious metal remains sideways despite the US Dollar delivering a corrective move, while investors digest global slowdown fears. US inflation data for August carries significance as it is the last one before the September monetary policy by the Federal Reserve (Fed), which is widely expected to remain unchanged.

Last week, Fed policymakers vocally supported maintaining the status quo on September 20 as inflation is falling and the labor market is loosening up. The appeal for the Gold price could be dampened ahead due to expectations of a healthy performance from the US Dollar. In comparison with other G7 economies, the US economy is better absorbing the impact of higher interest rates. The nation is demonstrating itself as resilient, which should heighten demand for the US Dollar.