CPI Data to Influence Fed Policy Expectations
Traders are closely monitoring today’s U.S. consumer price index (CPI) report, scheduled for release at 1230 GMT. The data could clarify the Federal Reserve’s stance on interest rates. A softer CPI would increase the likelihood of rate cuts, which would typically support gold prices. Conversely, a hotter-than-expected reading could dampen gold’s appeal by reinforcing expectations for prolonged high interest rates.
Trade Deal Headlines Offer Limited Relief
U.S. and Chinese officials announced on Tuesday they had agreed on a framework to restore trade cooperation, including the rollback of China’s export restrictions on rare earths. However, markets showed little enthusiasm, reflecting skepticism over the durability of any agreement. April’s tit-for-tat tariffs and only partial progress since underscore lingering distrust. “Gold should remain supported as long as global trade tensions risk escalating further, or even just staying elevated for longer,” said Han Tan, chief market analyst at Exinity Group.
Gold Prices Forecast: Neutral to Bearish While Below $3403.63
Gold is trading in a tight range, supported by geopolitical risk but held back by technical resistance. The support zone between $3310.48 and $3274.00 will be key—failure to hold above this area could open the door to extended downside. Unless the $3403.63 top is breached, sentiment remains mixed with a neutral-to-bearish near-term bias. Traders should watch both CPI outcomes and trade headlines for confirmation of the next directional move.
More Information in our Economic Calendar.
