Gold Prices Near $2,908 – Will CPI Data Push XAU to $3,000?
Gold prices inched higher on Monday, with XAU/USD trading near $2,908, as demand for safe-haven assets increased amid rising concerns over a global trade conflict and U.S. economic uncertainty.
The U.S. dollar index (DXY) remains near a four-month low, making gold more attractive for overseas buyers.
According to Kyle Rodda, a financial market analyst at capital.com , mounting downside risks to growth and uncertainty in U.S. foreign policy are boosting gold’s appeal. Rodda expects gold to breach the $3,000 mark within the next couple of months, given the current economic and geopolitical climate.
Key factors influencing gold’s recent movement:
Weaker U.S. dollar makes gold cheaper for global buyers.
Tariff-related uncertainty fuels demand for safe-haven assets.
Markets await key inflation data (CPI and PPI) for rate hike signals.
Despite recent gains, investors remain cautious, as upcoming inflation reports and Federal Reserve policy signals could dictate gold’s next big move.
Trump’s Tariff Policies Stoke Market Uncertainty
Gold’s latest rally is also linked to President Trump’s shifting tariff policies, which have increased volatility in global markets. Trump recently imposed new 25% tariffs on imports from Mexico and Canada, along with additional duties on Chinese goods. However, in a surprising move, he later exempted some imports from Mexico and Canada for a month, fueling market confusion.
Uncertainty over tariffs raises fears of inflation and slower economic growth.
Investors fear flip-flopping policies could destabilize trade markets.
Wall Street remains cautious amid mixed trade signals from the White House.
With global trade uncertainty and fears of a U.S. recession mounting, gold remains an attractive hedge against inflation and economic instability. However, upcoming Consumer Price Index (CPI) and Producer Price Index (PPI) data will determine whether gold continues its upward trajectory or faces short-term pressure.
Gold Technical Outlook – Symmetrical Triangle Breakout Looms
Gold is consolidating within a symmetrical triangle pattern, trading near $2,908, while holding just above the 50-period EMA ($2,908.76). The $2,913 resistance level has acted as a strong barrier, preventing further upside movement.
Key Price Levels to Watch:
Immediate Resistance: $2,913
Next Resistance: $2,930 (Breakout confirmation)
Higher Target: $2,944 – $2,956
On the downside, failure to maintain support at $2,894 could trigger a drop toward $2,878 and $2,863, potentially reinforcing bearish sentiment.
Immediate Support: $2,894
Next Support: $2,878
Stronger Support: $2,863
With U.S. inflation data set to be released this week, traders should closely monitor the triangle breakout direction. A decisive move above $2,930 could trigger a bullish rally, while a drop below $2,894 may invite more selling pressure.
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