Today’s analysis offers a comprehensive overview of the gold markets, delving into the fundamental and technical factors influencing current trends. Our report is designed to provide investors with the insights necessary to navigate these markets with confidence.
Gold prices are holding steady near their weekly high, awaiting the US CPI report for fresh direction. Concerns over trade wars and expectations of a Fed rate cut are providing support for the XAU/USD pair ahead of the data release. However, if inflation data surpasses expectations, gold could reverse its recent rebound and see further declines. A hotter-than-expected CPI could strengthen the Fed’s cautious stance on inflation and rate cuts, which would weigh on the non-yielding gold price. Meanwhile, the ongoing trade tensions, particularly the US’s new 25% tariff on imported steel and aluminum, remain in focus, influencing both market sentiment and gold’s role as a safe-haven asset. The White House confirmed that these tariffs will go into effect on Wednesday.
Gold prices are trading above the 21-day Moving Average, currently at $2,910, giving buyers renewed optimism for further gains. The 14-day Relative Strength Index remains solidly above 50, reinforcing the bullish outlook. If buyers manage to stay above the 21-day SMA at $2,910 after the US inflation data is released, the February 26 high of $2,933 will likely be their next target. Beyond that, gold could aim for a record high of $2,956, followed by the $2,972 level. However, if selling pressure emerges due to hotter-than-expected US CPI data, immediate support is at the previous day’s low of $2,880, with a further decline potentially testing the $2,850 psychological level. The Stochastic Oscillator is at 59, and the Relative Strength Index stands at 57.
In the dynamic and constantly changing bullion markets, staying informed through both technical and fundamental analysis is essential for making sound investment decisions. Our report aims to offer a balanced perspective to help investors navigate the complexities of gold trading.