Gold Price Update: XAU/USD Reaches $2,470, Bulls Holding Strong Amid CPI Data Release
- Major CPI Data Releases from US and UK Awaited by Market Players
- Gold Price Nears Record Highs as XAU/USD Consolidates at $2,470
On Tuesday, gold price inched closer to its record high, reaching $2,476.81 during Asian trading hours. Despite this, XAU/USD remained mostly stagnant around $2,470 as investors exercised caution ahead of key economic data releases. With the upcoming Consumer Price Index (CPI) figures from the US and UK, financial markets are treading carefully as central bank decisions may be influenced by these numbers.
The CPI data releases will play a significant role in shaping the future monetary policies of the US Federal Reserve and the Bank of England. The focus is particularly on the US CPI figures, as the Fed is yet to make a decision on interest rates. Speculation around a potential rate cut in September has been fueled by recent economic data indicating tepid growth.
Lower-than-expected CPI numbers could further strengthen the case for a rate cut, as seen in the recent Producer Price Index (PPI) data release. The US PPI rose as expected in July, but the annual increase fell short of expectations. This could potentially pave the way for lower interest rates in the future.
Technical Analysis: XAU/USD Outlook
From a technical standpoint, XAU/USD remains bullish on the daily chart. The pair is well above all its moving averages, with the 20 Simple Moving Average (SMA) acting as dynamic support around $2,420. The Momentum indicator is on an upward trend, while the Relative Strength (RSI) indicator suggests an upside bias.
XAU/USD is likely to retest its record high at $2,483.68, with strong support levels at $2,458.30 and $2,442.90. Resistance levels are seen at $2,483.70 and $2,495.10.
Overall, the upcoming CPI data releases and their impact on central bank decisions could have significant implications for gold prices. Investors should closely monitor these developments to make informed decisions about their investments in the precious metal.