Gold Stuck Below $4,600—Awaiting US Inflation Data to "Open Direction"
Gold prices (XAU/USD) are expected to move flat or consolidate in the Asian session on Tuesday, after hitting a new high the previous day. Gold is currently trending below the $4,600 area as market participants await the release of US consumer inflation (CPI) data, which could determine the direction of future movements.
This CPI data is important because it provides clues as to how quickly the Federal Reserve may begin lowering interest rates. If inflation declines, the opportunity for an interest rate cut typically increases—the dollar could potentially weaken, and gold could strengthen again. Conversely, if inflation remains high, the dollar could strengthen, and gold tends to be held back.
On the other hand, positive sentiment in the stock market has slightly reduced interest in safe-haven assets like gold in the short term. However, concerns about the Fed's independence are keeping investors cautious, preventing excessive selling pressure on gold.
Geopolitical factors continue to act as a cushion for gold, ranging from the Venezuelan issue, the threat of military action in response to unrest in Iran, the push to acquire Greenland, and the Russia-Ukraine conflict. Therefore, the overall trend for gold is still considered to be upward, and downward corrections can be seen as buying opportunities—although the increasingly overbought conditions require buyers to remain cautious. (az)
Source: Newsmaker.id
