Gold prices are on the rise as investors eagerly anticipate the upcoming US CPI release. The market’s reaction to this crucial data will depend on whether expectations for a rate cut are already factored into current prices.
From a technical analysis perspective, the gold chart is showing signs of a potential double-top pattern forming just ahead of the CPI release. This could signal a significant shift in the market sentiment and impact gold prices in the coming days.
In Asian trade, gold prices have been steadily climbing, approaching the all-time highs of $2531/oz. Market participants are closely watching the US CPI data as a potential catalyst for a breakout that could push gold prices even higher.
However, there are some reservations about the potential impact of the CPI release. Recent trends suggest that the market may have already priced in expectations for a rate cut, which could limit the upside potential for gold prices in the short term.
Geopolitical tensions also continue to play a role in supporting gold prices, with concerns over potential conflicts between Ukraine, Russia, and Western nations adding to the uncertainty in the market.
Technical Analysis Overview
Looking at the technical analysis of the four-hour gold chart, there are indications of a double-top pattern forming, which could lead to a significant market move following the CPI release.
If gold prices break above the ATH of $2531, the next key resistance level to watch is the $2550 handle. On the downside, support may be found around the 100-day MA at $2507.
Overall, while the market remains uncertain about the potential impact of the US CPI release on gold prices, it is crucial to closely monitor the data and the market’s reaction to it in the coming days.
Support: $2507, $2471
Resistance: $2531, $2550
Source: TradingView
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