Gold Futures Near Record High on Interest-Rate Cut Optimism

Gold Futures Approach Record High Amid Growing Interest-Rate Cut Expectations

This increase follows softer U.S. economic data over the past week, raising expectations for interest rate cuts. Last Wednesday's lower-than-expected U.S. Consumer Price Index (CPI) data provided relief for the precious metal, after three consecutive months of higher inflation dampened hopes for Federal Reserve rate cuts. Gold prices typically move inversely to interest rates; prolonged higher rates reduce the appeal of non-interest-bearing bullion. Currently, markets are pricing in an 85% chance of a Fed rate cut by September, up from 75% before the CPI data release, according to the Commonwealth Bank of Australia.

Technical Analysis of Gold:

The price of gold has reached a resistance level at 2450, influenced by factors such as the Federal Reserve's policies, CPI data, and geopolitical events. Despite these pressures, there remains a bullish sentiment. However, the price appears to be attempting a retest down to 2426 before potentially resuming its upward trend.

Currently, as long as the price remains below 2451, it indicates a likelihood of testing the 2426 level. If this level is breached, it could lead to a further bearish correction down to 2409. Conversely, if the price breaks above 2451, it would signify a continuation of the bullish trend, potentially reaching new all-time highs around 2462 and 2475.

Pivot Price: 2451
Resistance Levels: 2462, 2457, 2495
Support Levels: 2427, 2410, 2397

Today's anticipated trading range is between the support level at 2426 and the resistance level at 2462.