Gold price (XAU/USD) faces selling pressure after a slower-than-projected decline in the United States Retail Sales data for October. Monthly Retail Sales declined by 0.1% against expectations of a 0.3% contraction. In September, the economic data rose by 0.7%. US monthly headline Producer Price Index (PPI) in October logged the steepest decline since April 2020 due to a significant fall in gasoline prices. In the same period, the core PPI remained stagnant. The broader demand for the precious metal remains upbeat as easing price pressures in the US economy have dented bets of further policy-tightening by the Federal Reserve (Fed).

On Tuesday, the precious metal capitalized on slow growth in the US headline inflation, which decelerated due to a sharp fall in gasoline prices. The soft US inflation report for October indicates that current interest rates set by the Fed are adequate to bring down inflation to 2%. The US Dollar and bond yields are broadly down as the soft Consumer Price Index (CPI) has underpinned a risk-on impulse. Easing consumer and producer inflation has boosted confidence among investors in the possibility of early rate cuts by the Fed. Gold price edges down to near $1,960.00 after failing to sustain above $1,970.00. On a daily timeframe, the precious metal resumed its upside journey after discovering significant buying interest near the 50-day Exponential Moving Average (EMA). The recovery in Gold has been extended above the 20-day, which indicates that the broader appeal has turned extremely bullish.