Gold Daily | Gold Prices Surge Amid Falling Dollar, Eye on U.S. Inflation Data for Future Trends

【Latest Gold Price and Recent Trends】

Gold prices have surged to $2,684 per ounce, with a 0.27% increase as the dollar and U.S. Treasury yields decline. The market is eyeing U.S. inflation data for signs on Federal Reserve rate strategies, maintaining stability above $2,680.

【Technical Analysis】

Gold is showing potential for continued upward movement, with key resistance at $2,700 per ounce. The recent gains are supported by a strong RSI around 50, suggesting bullish momentum. A break below $2,659 could introduce bearish pressure.

【Market Sentiment and Economic Background】

The gold market is largely influenced by the anticipation of U.S. CPI data, with expectations of a monthly increase of 0.3% and an annual rise to 2.9%. The data could affect U.S. Treasury yields and, consequently, gold prices. Despite strong U.S. employment data boosting the dollar and temporarily suppressing gold, prices have demonstrated resilience. The market remains attentive to potential shifts in Federal Reserve policies amidst geopolitical and trade uncertainties.

【Analyst Opinions】

Analysts suggest that if CPI data exceeds expectations, it could affirm the market's view of limited Fed rate cuts for the year, potentially leading to a new wave of gold selling. Conversely, disappointing CPI results may bolster gold's bullish trend. Analysts also highlight gold's role as an inflation hedge, despite the appeal of rising interest rates.