Gold Prices Rise Ahead of US CPI Data Release
The CPI data release is expected to have a significant impact on gold prices, with a potential rate cut by the Federal Reserve and easing inflation pushing gold toward new highs. The provisional trade agreement between the US and China has limited gold's strength, and the market will be closely watching the Fed's policy path in the coming months.
Gold prices have increased by 0.3% to $3,336.33 an ounce as investors await the outcome of US-China trade talks and the release of US inflation data, including the Consumer Price Index (CPI) report.
The US and China are currently engaged in trade talks in London, with investors seeking clarity on the dispute. The CPI data, scheduled for release on Wednesday, will be closely watched for clues on the Federal Reserve's future interest rate decisions. A rate cut and easing inflation could potentially push gold prices toward new highs, with gold currently eyeing a breakout above $3,349.
The market focus has shifted to the US inflation data, with the CPI report expected to show a 2.5% annual rate, up from 2.3% in April. The provisional trade agreement reached between the US and China has limited gold's strength, while the Fed's interest rate expectations, shaped by the CPI data, pose a threat to gold prices. Silver, on the other hand, has been hovering near $36.50, supported by a bullish structure and expectations of easing US monetary policy.
The current trading price of gold is around $3,330, with resistance at $3,350 and support at $3,310. The RSI indicator is flat near the neutral zone, signaling indecision among traders. The US CPI data will influence market expectations regarding the Fed's policy path, with the Fed expected to keep interest rates unchanged at the June and July meetings.
As the market awaits the release of the CPI data, investors will be closely watching the impact on gold prices and the potential for a rate cut by the Federal Reserve. The outcome of the US-China trade talks and the inflation data will play a crucial role in shaping the future of gold prices and the overall market sentiment.