Gold Daily | Spot Gold Eases from Record Highs; Fed Rate Cut Hopes and CPI Data Influence Market Trends

【Latest Gold Price and Recent Trends】

Gold prices have slightly retreated, trading around $3,622 after hitting a record high of $3,673.95 earlier. Weak U.S. PPI data strengthens expectations of Fed rate cuts, with the upcoming CPI report being crucial for future gold movements.

【Technical Analysis】

Gold remains below its $3,675 historical high, showing two-way risk before the CPI data release. The 14-day RSI is gradually moving away from the overbought territory, suggesting potential price volatility. Key support stands at $3,600, with further downside at $3,550 if broken. Resistance is likely at $3,675, with potential to reach $3,700 and $3,750 depending on market responses to inflation data.

【Market Sentiment and Economic Background】

The market is focused on the U.S. CPI data, expected to show a rise, reflecting tariff impacts. Weaker than expected PPI and employment data further fuel rate cut expectations. Geopolitical tensions support gold, with incidents involving Russia and Israel contributing to risk aversion. The likelihood of a Fed rate cut has increased, pushing gold as a preferred hedge against uncertainty.

【Analyst Opinions】

Analysts highlight the dual impact of economic data and geopolitical tensions on gold. Ilya Spivak notes the market's anticipation for CPI data and its influence on Fed expectations. Dhwani Mehta suggests that high CPI could weaken gold's rally by strengthening the dollar, whereas lower CPI would support further gold gains. Valeria Bednarik sees a continuation of the upward trend barring significant shifts in data outcomes. Ricardo Evangelista anticipates continued gold strength with potential to break $3,750 by year-end if macroeconomic conditions remain supportive.