Gold Daily | Gold Steady Near Highs on Soft Inflation, Fed Rate Cut Hopes, Faces Resistance Test

【Latest Gold Price and Recent Trends】

Gold prices remain steady around $2,699 per ounce, having recently peaked at $2,705, the highest since December. The US core inflation's below-expectation performance has increased prospects of Fed rate cuts, supporting gold's rise amid a softer dollar and lower bond yields.

【Technical Analysis】

Gold is trading between the support of $2,600 and resistance at $2,721, nearing the resistance due to weak US inflation data. Buyers aim to break resistance for new highs, while sellers prepare for potential price pullbacks.

【Market Sentiment and Economic Background】

The market anticipates Fed rate cuts due to soft inflation data, which has led to a decline in Treasury yields and the dollar, enhancing gold's appeal. Expectations of US economic data, such as retail sales and jobless claims, may influence future trends. Moreover, geopolitical factors like the Israel-Hamas ceasefire diminish gold's safe-haven demand.

【Analyst Opinions】

Analysts suggest that the unexpected slowdown in core inflation could prompt the Fed to ease monetary policy. The decline in US core CPI has bolstered hopes for rate cuts, potentially benefiting gold as it reduces the opportunity cost of holding non-yielding assets. The focus now shifts to upcoming economic data releases, which could further clarify the Fed's rate path.