Gold Hesitates Ahead of CPI
Gold prices (XAU/USD) moved defensively on Tuesday, remaining stuck below $4,600, although they remained near record highs. In the European session, spot gold was around $4,594 per ounce, after briefly touching a new peak above $4,600 in the previous trading session.
Today's main resistance for gold came from the US dollar, which attempted to recover after weakening the previous day. However, the dollar's strengthening is not expected to be "unfettered," as the market remains sensitive to the issue of the Fed's independence—a factor that makes investors hesitant to aggressively pursue USD.
Beyond the dollar factor, gold remains cushioned by ongoing geopolitical uncertainty, so downward pressure is likely to be limited. This situation keeps safe-haven interest alive, although a relatively positive stock market could temporarily curb gold's progress.
The next direction depends heavily on the release of the December US inflation (CPI). This data will shape expectations regarding the Fed's interest rate path and could provide new "directional impetus" for gold. With the major trend still strong, corrections are usually seen as buying opportunities—but because prices are already high, buyers should also be wary of consolidation/profit-taking.
Source: Newsmaker.id
