Gold prices (XAU/USD) have stabilized around $2,690, after recent price swings. Market activity has slowed as traders await the upcoming US inflation report. The Federal Reserve’s stance on interest rates continues to impact Treasury yields and support the US Dollar (USD).
Gold prices have steadied near $2,690, just below a two-week high reached earlier this week. Traders are holding back, waiting for the release of the US Consumer Price Index (CPI) report, which could influence the Federal Reserve’s next move on interest rates.
- Market Overview
Higher US Treasury bond yields are boosting the USD, which has been rising for four consecutive days. This trend puts pressure on gold as a safe-haven asset, despite geopolitical concerns and trade tensions offering some support. - Impact of US Inflation Data
The upcoming US CPI report is expected to guide the Federal Reserve’s decision on interest rate cuts. This could affect USD price movements and ultimately determine gold’s near-term direction. - Geopolitical and Economic Developments
Recent events include Israel’s airstrikes on Syria and Ukraine’s plans to equip its military with advanced drones. Additionally, US President Donald Trump has announced tariffs against major trading partners, adding uncertainty to the markets. - Technical Analysis and Expectations
Traders are currently pricing in an 85% probability of a 25-basis-point rate cut by the Fed at its December meeting. However, recent statements from Fed Chair Jerome Powell suggest a more cautious approach to rate cuts.
Technically, gold price has broken above $2,650, supporting bullish momentum. Traders are keeping an eye on levels around $2,700, with possible resistance around $2,720-$2,722. A sustained move beyond $2,700 could push gold towards $2,758-$2,760, approaching record highs.
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