Gold Price Stuck in Range as Traders Await US CPI Data

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Gold prices (XAU/USD) remain range-bound near the weekly high as the European session begins on Wednesday, with traders awaiting the release of US consumer inflation data before making new directional moves. The upcoming US Consumer Price Index (CPI) will be crucial in shaping expectations for the Federal Reserve’s interest rate decisions, which will, in turn, influence demand for the US Dollar (USD) and affect the price of gold.

Ahead of the key data release, some repositioning has helped the USD recover slightly from its lowest level since October 16, acting as a headwind for gold. Additionally, a generally positive sentiment in equity markets is putting a cap on XAU/USD. However, concerns over the economic impact of US President Trump’s trade tariffs, along with expectations that the Fed will cut rates multiple times this year due to a tariff-driven economic slowdown, continue to support gold.

From a technical standpoint, bulls will likely need a break above the $2,928-$2,930 resistance zone to push for further gains. A move higher could take gold back towards the all-time high around $2,956, reached on February 24. A continued upward move would signal a resumption of the established bullish trend, supported by positive indicators on the daily chart.

On the downside, if gold falls below $2,900, support may be found around the $2,880 area (the weekly low), followed by $2,860. A further decline could see gold test the February swing low around $2,832-$2,833, before potentially reaching the $2,800 mark.

Paraphrasing text from "FXSTREET" all rights reserved by the original author