The gold price (XAU/USD) continues to trade below $2,900 as investors await the US Consumer Price Index (CPI) report. The market remains cautious, with the US Dollar gaining traction following Federal Reserve Chair Jerome Powell’s hawkish remarks. Meanwhile, geopolitical risks and trade tensions provide support for the safe-haven metal.
Gold Price Under Pressure Amid Fed’s Hawkish Stance
Federal Reserve Chair Jerome Powell recently highlighted the strength of the US economy. He noted a solid labor market and easing inflation, though it remains above the 2% target. This has bolstered the US Dollar, exerting downward pressure on the gold price.
Investors are closely monitoring the upcoming US CPI report for insights into the Fed’s rate-cut path. The headline CPI is expected to rise by 2.9% year-over-year, while the core CPI may dip slightly to 3.1%.
Trade Tensions and Geopolitical Risks Support Gold
US President Donald Trump’s new tariffs on steel and aluminum imports have sparked concerns about a global trade war. Additionally, potential tariffs on automobiles, pharmaceuticals, and computer chips have heightened market uncertainty.
These developments act as a tailwind for gold, as investors seek safety amid rising geopolitical risks. The precious metal remains a preferred hedge against market volatility and inflationary pressures.
Technical Analysis: Dip-Buying Opportunities in Gold
From a technical perspective, the Relative Strength Index (RSI) suggests potential profit-taking around the gold price. However, any further decline may attract buyers, with support levels near 2,855and2,855and2,834.
On the upside, a move above the 2,910resistancecouldpavethewayforaretestoftheall−timepeaknear2,910resistancecouldpavethewayforaretestoftheall−timepeaknear2,942-2,943. Follow-through buying may extend the uptrend observed over the past two months.
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