GOLD PRICE PAUSES AHEAD OF US PPI INFLATION DATA

GOLD PRICE PAUSES AHEAD OF US PPI INFLATION DATA
Gold Price Pause: Gold's four-day recovery halted in Asian trading on Thursday after reaching a five-week high near $2,725, as traders await US inflation data.
Market Focus: Investors are assessing the likelihood of US Federal Reserve interest rate cuts next year, amid rising US Treasury bond yields.
XAU/USD Technical Outlook:
Gold has pulled back, with the 14-day RSI heading toward 50.00.
Key support levels are at $2,671 (50-day SMA) and $2,646 (21-day SMA), with the potential for further decline toward $2,613.
Resistance lies near $2,726 and $2,750, with a sustained move above $2,750 potentially targeting the record high of $2,790.
Fundamental Factors:
Gold has been supported by expectations of Chinese stimulus, Fed rate cut optimism, and geopolitical tensions.
The US Treasury bond yields are firm due to ample bond supply and a widening budget deficit.
Despite a projected Fed rate cut, bond yields and the US Dollar are strengthening.
US Inflation Data: US CPI data showed a 2.7% annual rise, with core inflation at 3.3%. Markets anticipate a 91% chance of a 25bps rate cut by the Fed next week.
Investor Caution: Gold buyers are cautious, awaiting US Producer Price Index (PPI) and weekly Jobless Claims data for clues on the Fed's policy direction and the US Dollar's movement.
Overall Sentiment: The direction of the Fed's policy and global risk trends remain crucial in shaping Gold's price action.