Gold Daily | Stable Prices Await U.S. CPI Data Amid Bullish Momentum and Geopolitical Tensions

【Latest Gold Price and Recent Trends】

International gold prices are stable at around $2520, with a recent high of $2528, driven by anticipation of the U.S. CPI inflation data. Market focus is on U.S. CPI, which could influence the magnitude of the Fed's expected rate cut next week.

【Technical Analysis】

Gold shows bullish momentum, trading above its pivot point of $2512.17, supported by the "Three White Soldiers" candlestick pattern, indicating a strong buying trend. Immediate resistance is at $2529.43, with further resistance at $2539.43 and $2548.82. Key support is at $2500.82, then $2485.44, and $2417.90. The 50-day and 200-day moving averages are below the current price, reinforcing bullish sentiment. A decline below $2512 could trigger rapid selling.

【Market Sentiment and Economic Background】

The market's focus is on U.S. CPI, expected to show inflation close to the Fed's 2% target, which could be pivotal for the Fed's upcoming rate decision. CPI and PPI data expected may support a potential rate cut. Oil prices and geopolitical tensions, notably in Gaza and Lebanon, add complexity to the inflation outlook. The latest inflation data are crucial, as softer figures could push for a higher probability of a 50 basis point cut, while stronger data might reduce this likelihood.

【Analyst Opinions】

Analysts suggest gold might hit historical highs if inflation data comes in weak, bolstering a larger rate cut expectation. TD Securities sees gold in a narrow trading range awaiting the next catalyst, likely the CPI data. Exinity Group highlights gold's strength above $2500 as investor support is anticipated on any dips. There’s consensus that even if only a 25 basis point cut is realized, gold's trajectory remains positive due to overall market sentiments and potential further rate reductions. Geopolitical tensions, particularly in the Middle East, and economic uncertainties continue to make gold a preferred safe-haven asset. The decreasing inflation and weakening dollar also support a bullish outlook for gold prices.