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Gold Price Consolidates Near Record Highs Ahead of US CPI Data

Gold price (XAU/USD) takes a breather near all-time highs as investors await Tuesday’s critical US Consumer Price Index (CPI) data. The inflation release will significantly influence the outlook for US interest rates and, consequently, Gold’s trajectory.

Key Factors:

  • US CPI Data: Inflation figures will dictate the Fed’s policy stance and impact demand for Gold as a hedge.
  • Weakening Yields & USD: Falling US Treasury yields and a subdued US Dollar support the precious metal.
  • Fed Outlook: Recent economic data and Fed Chair Powell’s comments suggest the potential for interest rate cuts in June, boosting Gold.

Technical Outlook:

  • Bullish Bias Intact: Gold remains near record highs, eyeing the $2,200 resistance level.
  • Support Levels: December 4 high ($2,145) and December 28 high ($2,088) offer potential support.
  • Overbought RSI: The Relative Strength Index (RSI) in overbought territory suggests a possible short-term correction.