Gold prices (XAU/USD) rebounded slightly after an initial decline following the release of mixed US economic data.
Key Factors:
- US Economic Data: The US Consumer Price Index (CPI) showed a slight increase, while the Initial Jobless Claims data was weaker than expected.
- Fed Rate Expectations: The market is now pricing in a higher probability of a smaller 25 basis point rate cut in November.
- Geopolitical Risks: The ongoing tensions in the Middle East continue to support the safe-haven appeal of gold.
Technical Analysis:
- Short-Term Trend: Gold is in a short-term downtrend, with potential for further declines.
- Support Levels: The $2,600 level is a key support level, with potential for further support at the 200-day Simple Moving Average (SMA).
- Upside Potential: A break above the 200-day SMA could signal a reversal to the upside.
Overall Outlook:
Gold prices are likely to remain volatile, influenced by economic factors, market sentiment, and geopolitical risks. Traders should monitor technical indicators for signs of a trend reversal.
