GOLD PRICE PAUSES AHEAD OF US PPI INFLATION DATA

GOLD PRICE PAUSES AHEAD OF US PPI INFLATION DATA
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.