Traders in the gold market are staying cautious amidst mixed signals, particularly as they await the release of the US Consumer Price Index (CPI) data on Tuesday. Gold prices are struggling to attract buyers amid expectations of a hawkish stance from the Federal Reserve and a positive sentiment in the market. Despite this, uncertainty surrounding potential interest rate cuts by the Fed is preventing the US Dollar from gaining significant ground, providing some support to gold prices.
Investors are hesitant to make significant moves and are waiting for the CPI data to gauge the Fed’s future policy decisions. This data will play a crucial role in determining the direction of the US Dollar and could provide new momentum for gold prices.
The recent remarks from several Federal Open Market Committee (FOMC) members, suggesting a less aggressive approach to interest rate cuts, have also influenced market sentiment. Additionally, revisions to US consumer prices data have shown slightly higher increases than previously reported, adding to the overall uncertainty.
Technical analysis suggests that gold prices are currently within a short-term range, with key support levels around $2,015 and $2,000, and resistance levels near $2,033 and $2,065. A break below $2,000 could signal further downward movement, while a break above $2,065 could lead to a bullish trend.
Overall, traders are waiting for clearer signals from the CPI data before making significant moves in the gold market.