Gold Daily | Gold Prices Rebound Amid Bargain Hunting; U.S. CPI Data Key to Future Movements

【Latest Gold Price and Recent Trends】

Gold prices rebounded to around $3,254 per ounce Tuesday after touching a one-week low, driven by bargain hunting. The previous day saw a 2.7% drop due to eased U.S.-China trade tensions, increasing risk appetite and weakening gold's safe-haven appeal.

【Technical Analysis】

Gold prices have recently broken below the 21-day SMA, signaling increased downside risk. The 14-day RSI is around 49, indicating a bearish signal. If U.S. CPI data exceeds expectations, gold may target the 50-day SMA near $3,145. A drop below key support levels of $3,100 and $3,072 could occur. Conversely, weaker-than-expected CPI could allow gold to reclaim the 21-day SMA, aiming for resistance near $3,430.

【Market Sentiment and Economic Background】

The U.S.-China tariff truce has lifted global equity markets and reduced recession fears, pressuring gold. However, the market remains cautious about long-term agreements. The upcoming U.S. CPI data is pivotal, with expectations of steady annual increases. Higher-than-expected results could fuel hawkish Fed expectations, strengthening the dollar and pressuring gold. Meanwhile, easing tariffs and geopolitical tensions, like the India-Pakistan ceasefire, further suppress gold's allure.

【Analyst Opinions】

Analysts are divided on gold's immediate prospects. While some see current levels as an entry point for value buying, others highlight risks tied to improved global economic outlooks. The consensus remains to hold gold, expecting future bullish tests towards $3,500. Analysts anticipate potential rate cuts from the Fed, which could sustain gold's appeal as a non-yielding asset amidst economic uncertainty.