Gold Prices Stable Amid Central Bank Buying and Lower US Inflation

Gold prices have stabilized above their short-term moving average, but remain capped by longer-term averages. According to recent data, central banks purchased 289 tonnes of gold in the last quarter, a significant increase from the same period last year.

This surge in official sector buying, combined with lower U.S. CPI readings that reduce the likelihood of a Fed rate hike in September, has boosted demand for gold. With inflation outlook shifting and opportunity costs falling, institutional and retail buyers are driving sustained interest in the metal.

Technically, gold's price is trading between $4,343 and $4,404, with a 61% probability of an upward move over the next two to three sessions. However, oscillators indicate potential volatility ahead as traders monitor for a breakout from this established corridor.