GOLD - Consolidation ahead of news. Long squeeze?
FX:XAUUSD is trading in the $4575-4600 range (consolidation) ahead of US inflation data (CPI) for December...
Inflation remains above the Fed's target (2%), making the data key to assessing the timing of rate cuts. XAU is consolidating below record highs. Profit-taking is observed ahead of the data release. Geopolitical risks and concerns about the Fed's independence support long-term demand for gold.
The reaction to CPI data may be short-term, as these factors remain a priority:
Above forecast: dollar growth, gold correction to $4550 - 4520.
Below forecast: dxy weakening, gold growth to $4650 - 4700
Gold retains its upside potential, but in the near term, its movement will depend on inflation data. Any correction can be seen as a buying opportunity amid ongoing geopolitical and monetary risks.
Resistance levels: 4600, 4630, 4650
Support levels: 4577, 4560, 4550
The initial retest of 4600 may end in a pullback, and a close below 4577 may trigger a decline to 4561 - 4550 before an attempt to grow (interest in the liquidity zone). However, against the backdrop of news reaction, gold may test 4550 - 4520 before continuing to rise. Very weak news may trigger a breakout of 4600 and an aggressive rally. It is important to monitor the context...
Best regards, R. Linda!