Technical Analysis:
GOLD is trading around 2360 gained good momentum and Gold have so many hurdles to again continue new buy trend, we have liquidity residing above ath so price can also target that and then fall below, or price can fall from 2370 zone where we also have a mitigation block on 1H.
Fundamentals:
Gold is data-dependent at the moment, "if the CPI starts to come down a little bit, it will be positive for gold as it is in a fantastic position to capitalize on that dynamic considering its resilience to this point.
But, "if CPI comes higher than expected then that's going to really rattle all the markets and the confidence that rates can be cut."
Last week's lacklustre jobs report and a softer-than-expected U.S. payrolls report for April have increased expectations for rate reductions by September. (FEDWATCH)
Bullion is known as an inflation hedge, but higher rates increase the opportunity cost of holding non-yielding gold.
Fed Chair Jerome Powell said on Tuesday that he expects U.S. inflation to continue declining through 2024 and noted it was unlikely the central bank would have to raise interest rates again.
However, data on Tuesday showed that U.S. producer prices increased more than expected in April.
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