Gold Price Climbs to $2,190 Ahead of Key US Inflation Data
Gold price (XAU/USD) rallied to a two-day high near $2,190 as the US Dollar (USD) weakens ahead of Friday's crucial US core Personal Consumption Expenditure (PCE) price index release.
Key Factors:
- US Dollar Retreats: Growing confidence among Fed policymakers about easing inflation pressures and the potential for three rate cuts this year puts pressure on the USD.
- PCE Data Focus: Investors await Friday's inflation data for fresh cues on the Fed's rate trajectory.
- Inflation Impact: Signs of easing inflation would boost Gold, while stubborn data could strengthen the USD, increasing the opportunity cost of holding non-yielding Gold.
Technical Outlook:
- RSI Recovery: The Relative Strength Index (RSI) rebounds after signaling overbought conditions, supporting the near-term bullish outlook.
- Bullish EMA: The upward-sloping 20-day Exponential Moving Average (EMA) at $2,145 adds to the bullish bias.
- Resistance and Support: Potential resistance lies near the 161.8% Fibonacci extension level at $2,250, with support at the December 4 high of $2,144.48.