XAUUSD

The most critical data for non-yielding gold today is US inflation. An increase that exceeds expectations in inflation means that the Fed will maintain its hawkish stance; this will put serious pressure on gold prices by raising the dollar and bond yields. In such a case, the pivot level of 3323.93 could test the supports at 3298.73 (Support 1) and 3276.48 (Support 2). However, a cooling in inflation could lead to strong purchases of the precious metal as it would open the door for the Fed to consider rate cuts. In this positive scenario, the first target would be 3346.18 (Resistance 1), and if this level is surpassed, the resistance at 3371.38 (Resistance 2) will come into play.