SHORT TERM PREDICTIONKey Factors Influencing XAU/USD:
U.S. Inflation Data:
The latest Consumer Price Index (CPI) report indicates a 0.3% monthly increase and a 3.3% annual rise, aligning with market expectations. This suggests a moderate inflation environment, potentially leading to a more dovish stance from the Federal Reserve.
Federal Reserve Policy Outlook:
Market participants anticipate an 86% probability of a 25-basis-point rate cut in the upcoming Federal Reserve meeting. A rate cut could weaken the U.S. dollar, making gold more attractive to investors.
Technical Indicators:
Gold prices are currently testing key resistance levels around $2,695 to $2,700 per ounce. A sustained break above this range could signal further upside potential. Conversely, failure to surpass these levels may result in a pullback toward support around $2,683.
Short-Term Prediction:
Given the current economic indicators and technical factors, XAU/USD is likely to trade within the $2,683 to $2,700 range today. A dovish signal from the Federal Reserve could propel prices above $2,700, while any hawkish surprises may lead to a decline toward the lower end of the range.
