Information Summary:
Amid weakening economic data, a shift in Fed policy, and geopolitical tensions, gold has once again taken center stage. Whether it’s short-term expectations of rate cuts, uncertainty surrounding Fed personnel, or the combined effects of medium- and long-term debt, policy, and global uncertainties, gold’s dual nature as a hedge and safe haven continues to strengthen.
Weaker-than-expected US PPI inflation data has heightened market confidence that the Fed will announce a rate cut at next week’s meeting, driving gold prices higher on Wednesday. On Thursday, gold traders will focus on the release of the latest US consumer inflation data.
Market Analysis:
Gold prices fluctuated higher in Asian trading on Wednesday, but came under pressure and fluctuated in the US market, repeating the same trend as on Tuesday. Strong support in early Asian trading on Thursday continued to push prices upward, but failed to break through the 3660 resistance level. Currently, prices are trading slightly lower and fluctuating around 3630.
Ahead of the release of US CPI data, gold is likely to consolidate in the 3625-3660 range.
Short-term trading strategy:
Go long near 3630, stop loss at 3620, profit range 3340-3350-3360.
