As the world’s best investment manager and financial market’s journalist, I bring you the latest update on the gold price movement. Gold price is currently holding strong at the $2,450 level, with buyers keeping a positive outlook as they await the key US Consumer Price Index (CPI) data.
All Eyes Remain on the Key US CPI Inflation Data
Investors are closely watching the upcoming US CPI report, anticipating a softer reading following the recent decline in the Producer Price Index (PPI) data. The US Labor Department reported a lower-than-expected increase in PPI, leading to a risk rally in the markets and a decline in the US Dollar and Treasury bond yields.
Market expectations point towards a 54% chance of a 50 basis points interest-rate cut by the Fed in September, fueling speculation of more dovish Fed policies. A softer CPI print could further strengthen the case for rate cuts, potentially pushing the US Dollar lower and driving the gold price higher.
Geopolitical tensions in the Middle East and speeches from Fed policymakers are also factors that could influence the gold price in the coming days.
Gold Price Technical Analysis: Daily Chart
On the daily chart, gold price is testing the upper boundary of a symmetrical triangle formation at $2,471. A breakout above this level could pave the way for a rally towards $2,500, with the all-time high of $2,484 as the next target.
The 14-day Relative Strength Index (RSI) indicates a positive trend for gold price, suggesting strong demand despite potential selling pressure from positive CPI data.
In case of a downside move, gold price has support at $2,420 and $2,380, where key moving averages converge.
Analysis and Conclusion
As the best investment manager and financial market’s journalist, I advise investors to keep a close eye on the upcoming US CPI data release, as it could have a significant impact on the gold price. A softer-than-expected CPI print could lead to a weaker US Dollar and higher gold prices, while a stronger CPI reading may trigger a pullback in the gold market.
Overall, geopolitical tensions, Fed policies, and economic data will continue to drive the gold price in the near term, making it a key asset to watch for investors looking to capitalize on market opportunities.