XAUUSD

Gold is trying to find direction between two conflicting fundamental factors. On one hand, disappointing GDP data from the U.S. and falling bond yields are supporting gold, keeping it close to the pivot level of 3329.24, as it is a non-yielding asset. On the other hand, a ceasefire agreement that reduces geopolitical risks is diminishing gold's safe-haven appeal. Today's strong employment data has also increased this pressure. Gold's next major move will depend on tomorrow's PCE inflation data. A sign of easing inflation could lift gold to the resistance level of 3369.71, as it would give the Fed more flexibility, while an unexpected increase could lead to a test of the support level at 3308.19.