Gold Faces Key Resistance Ahead of Crucial US Inflation Data

Gold prices have been range-bound for much of this session after last week's sharp rebound, which saw the precious metal climb nearly 7.5%.

The move has put gold firmly back on traders' radar, but the question now is whether it can develop into a sustained uptrend or prove to be another sharp rally within a broader consolidation phase.

Some of the gains from last week were attributed to weakness in US data, particularly Friday's employment figures, which showed payrolls fell by 20,000 and revised lower previous months' figures by over 100,000 jobs.

The Federal Reserve is set to meet on September 16, and upcoming data releases will be crucial in shaping expectations for Fed policy. The first major test arrives Wednesday with the release of July's US CPI report, which could provide a decisive moment for gold's next move.