Gold Daily | Gold Rebounds to $2,608 Amid Strong Dollar and Awaited U.S. Inflation Data

【Latest Gold Price and Recent Trends】

International gold prices slightly increased to $2,608.18 per ounce, rebounding from the previous day's decline. Investors are cautious, awaiting U.S. inflation data which could influence the Federal Reserve's monetary policy. Gold has fallen almost 6% since the U.S. election, affected by a strong dollar and anticipated inflationary policies by the Trump administration.

【Technical Analysis】

On the daily chart, gold is trading near the critical trendline around $2,600. Buyers are entering at this level with a clear risk set below the trendline, aiming for a rebound to new highs. Conversely, sellers aim for a break below this level to support bearish bets with a target around $2,400. On the 4-hour chart, strong support around $2,600, formed by a previous low and a trendline, is evident. A downward trendline indicates current bearish momentum. A pullback may present selling opportunities to push the price below the major trendline, while buyers will look for an upward breakout to challenge new highs.

【Market Sentiment and Economic Background】

The U.S. dollar remains strong, near its highest level since May, pressuring gold due to their inverse relationship. The dollar is buoyed by expectations of Trump’s expansive policies, which could complicate the Fed's interest rate decisions. Inflation is expected to rise, with October's CPI forecasted to increase 0.2% month-over-month and 2.6% year-over-year, potentially inhibiting further Fed rate cuts. Despite inflation concerns, some Fed officials remain cautious, suggesting inflation might still exceed the Fed's 2% target. The upcoming CPI data release could significantly impact gold and dollar movements.

【Analyst Opinions】

Analysts highlight the impact of Trump's policies on gold, with expected tariffs potentially affecting inflation and Fed decisions. A stronger-than-expected CPI could turn gold bearish, while weaker data might reinforce dovish Fed rate cut expectations, supporting a gold price increase. The relative strength index (RSI) remains bearish on daily charts, suggesting the path of least resistance for gold is downward. However, any price rise could be seen as a selling opportunity, limited near resistance around $2,630-$2,655. If the price breaks below $2,600, it might drag down to $2,540 or further.