Gold Prices Edge Higher Ahead of U.S. CPI Report

Gold Spot(XAUUSD)

Fundamental Analysis

Gold prices have inched up to around $3,340/oz as markets await the release of U.S. CPI data later today. The inflation report is seen as a key factor in shaping the Fed’s interest rate policy going forward. If inflation exceeds expectations, the USD may strengthen, putting pressure on gold prices. Conversely, weaker inflation would reinforce expectations of Fed rate cuts, providing support for gold.

On the political front, former President Trump has sent warning letters to 25 countries about new import tariffs set to take effect on August 1st, raising fears of a potential global trade war.
 
Technical Analysis

Medium-Term Trend: Sideways Within a Wide Range Between Support at $3,212–$3,245 and Resistance at $3,380–$3,440
 
Current Price: Approximately $3,351.35 — approaching the short-term resistance zone and reacting at a cluster of Bearish Order Blocks.
 
A sharp increase in volume was observed at the Bullish Order Blocks near the bottom range, confirming the presence of large capital inflows (Smart Money activity).

 

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