Gold: Consolidation with key levels in focus – OCBC

💡 DMK Insight

Gold’s recent rebound is tied to softer US CPI data, but don’t get too comfortable just yet. While the expectation of a prolonged easy Fed policy is boosting gold, the market’s reaction has been cautious, reflecting the volatility we’ve seen recently. Traders should be aware that this rebound could be short-lived if inflation data shifts or if the Fed signals a change in its stance. Watch for key technical levels; if gold can hold above its recent highs, it might attract more buying interest. However, a drop below these levels could trigger a wave of selling, especially among retail traders who are often quick to react to price movements. Keep an eye on correlated assets like the US dollar and treasury yields, as they can influence gold’s trajectory significantly. The next CPI release will be crucial—if it surprises to the upside, expect gold to face downward pressure again.