Gold Rally Pauses Ahead of US CPI Report
The gold price rally has paused near $4,440 as investors await clarity from the upcoming US Consumer Price Index (CPI) report. The market is in a wait-and-see mode ahead of the CPI release, which is expected to show a moderation in price pressures but still above the Fed's 2% target.
The recent economic data has been mixed: while the labor market remains resilient, manufacturing activity has shown signs of slowing. This has led traders to price in a higher probability of a rate cut in the second half of the year, which typically supports non-yielding assets like gold.
From a technical perspective, gold is trading in a tight range between support at $4,400 and resistance at $4,460. A break above the latter could open the door for a test of the psychological $4,500 level, while a drop below support may trigger a pullback toward the $4,350 area.