Gold Price Nears $3310, Awaits CPI and Fed Signals
The gold price is waiting for a catalyst to break out of its near-term bull trend, with the US dollar driving the next move. Traders are closely watching the CPI data and Fed signals, which could provide the necessary catalyst for a breakout. The key levels to watch are $3,280-3,265 and $3,325-3,340, with a break below or above these levels potentially triggering a significant move in gold prices.
Gold prices are hovering near a key technical pivot at $3310.48, as traders await the release of May CPI data and signals from the Federal Reserve, with a break below this level potentially sending prices to $3277.91 and testing the 50-day moving average at $3265.40.
The weaker US dollar is supporting gold prices, but resistance at $3403.63 is limiting the upside potential. The market is closely watching US-China trade talks and CPI data, with odds of a rate cut shifting from two to one by October. China's central bank has added gold to its reserves for the seventh straight month, signaling ongoing institutional demand.
Technical indicators suggest waning bullish momentum, with prices testing the 23.6% Fibonacci retracement level at $3,291. A daily close below this level could attract fresh selling pressure, while a rebound must clear the $3,339-$3,392 region to reassert bullish control. The 20-day Simple Moving Average (SMA) has turned flat near $3,299, indicating stalled upside momentum.
In India, gold prices fell 0.61% to ₹96,448 per 10 grams due to weak global cues, low domestic demand, and strong US jobs data. Experts have highlighted key levels for MCX Gold, with support at $3,280-3,265 and resistance at $3,325-3,340, and in INR, gold has support at ₹96,720-96,390 and resistance at ₹97,350-97,640.
The outlook for gold remains bearish unless buyers reclaim control above key resistance, with a failure to hold the 50-day moving average potentially triggering accelerated downside. The start of US-China trade talks in London has not had a significant impact on gold prices, which remain elevated due to broader geopolitical tensions.