Gold holds above $2,600 as investors await US CPI for market cues
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Gold prices hover just above $2,600 as markets await the upcoming US Consumer Price Index (CPI) data, which could impact the Fed’s rate-cut trajectory. Despite safe-haven demand, a bullish US Dollar and elevated Treasury yields cap gains for the non-yielding metal. With Gold’s technical indicators showing bearish momentum, a decisive move above $2,632 could open upside potential, while a break below $2,600 may indicate further losses.
Gold Price Stabilizes Above $2,600 Amid Rate and Inflation Uncertainty
Gold (XAU/USD) is trading near the $2,600 mark on Wednesday after a modest rebound from its recent low, as traders anticipate the release of US CPI inflation data. Although safe-haven flows have lent support to the metal amid economic and geopolitical uncertainties, the strong US Dollar and elevated Treasury yields, driven by optimism around President-elect Donald Trump’s economic policies, continue to limit upside for Gold.
Technical Outlook and Key Levels for Gold
Technically, Gold prices are consolidating below the 38.2% Fibonacci retracement level of the June-October rally, indicating continued bearish momentum. Oscillators on the daily chart remain in negative territory, signaling potential for further downside unless the price breaks through $2,632. Immediate resistance sits between $2,630 and $2,655, with a more robust barrier near $2,700.
On the downside, a decisive break below $2,600 could pave the way for a move toward $2,540, where the 100-day Simple Moving Average (SMA) and 50% Fibonacci level converge. This zone is likely to act as a critical support area, with further declines possibly signaling a prolonged bearish phase for Gold.
The forthcoming US CPI data will be crucial in shaping market expectations for the Fed’s rate path, potentially setting the stage for Gold’s next directional move.
Gold Price Stabilizes Above $2,600 Amid Rate and Inflation Uncertainty
Gold (XAU/USD) is trading near the $2,600 mark on Wednesday after a modest rebound from its recent low, as traders anticipate the release of US CPI inflation data. Although safe-haven flows have lent support to the metal amid economic and geopolitical uncertainties, the strong US Dollar and elevated Treasury yields, driven by optimism around President-elect Donald Trump’s economic policies, continue to limit upside for Gold.
Technical Outlook and Key Levels for Gold
Technically, Gold prices are consolidating below the 38.2% Fibonacci retracement level of the June-October rally, indicating continued bearish momentum. Oscillators on the daily chart remain in negative territory, signaling potential for further downside unless the price breaks through $2,632. Immediate resistance sits between $2,630 and $2,655, with a more robust barrier near $2,700.
On the downside, a decisive break below $2,600 could pave the way for a move toward $2,540, where the 100-day Simple Moving Average (SMA) and 50% Fibonacci level converge. This zone is likely to act as a critical support area, with further declines possibly signaling a prolonged bearish phase for Gold.
The forthcoming US CPI data will be crucial in shaping market expectations for the Fed’s rate path, potentially setting the stage for Gold’s next directional move.