Gold Prices Under Pressure Ahead of Key Inflation Data Release
Gold prices have declined for the second consecutive week, sparking concerns about the precious metal's near-term forecast. The US Labor Day holiday has delayed key data releases, but one major update is now due on Friday: the US CPI report.
Investors are watching inflation data closely, as a stronger-than-expected jobs report last week underscored concerns that inflation might be more persistent than hoped, potentially leading the Fed to raise rates. A hotter-than-anticipated CPI reading could cement expectations for a September rate hike and put pressure on gold prices.
From a technical analysis perspective, the direction of gold prices remains uncertain due to recent volatile price action. The bearish trend may have resumed, with key areas of resistance holding at $4,500, $4,461, and $4,565-$4,600. If these levels are broken, the $4100 level could come back into focus.