Gold Bounces Back With US Inflation Update Looming
XAU/USD Analysis
After a pullback from last week's record peak, Gold regains its footing above key technical levels and has the opportunity to set new highs (2,483). The greenback is weighed by bolstered expectations for multiple rate cuts by the Fed, following the resumption of the disinflation trend and remarks by Chair Powell and other officials that seem to lay the groundwork for a September pivot. Other supportive factors include central bank buying and safe heaven flows from renewed Sino-Western jitters and US election uncertainty.
On the other hand, China has paused its purchases, output is expected to reach new records this year, while bets for three Fed rate cuts are excessive and markets may be in for a disappointment. As a result, XAU/USD could face renewed pressure. A breach of the EMA200 would pause the bullish bias, but the daily Ichimoku cloud provides another region of support.
Investors now turn to the crucial US PCE inflation report on Friday which can determine the next leg of the move, as it can shape policy making and market expectations.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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