The previous day’s U.S. CPI (Consumer Price Index) came in lower than expected, causing U.S. long-term interest rates to rise. Yesterday, rates climbed even higher because Waller, a member of the Federal Reserve Board, hinted at the possibility of 3-4 rate cuts within the year. This led to more buying of gold, which does not pay interest, pushing prices up to 2725—close to the double top highs recorded last November and December. At this level, further upward movement was limited.
If prices fall back from here, it could form a triple top pattern.
However, concerns about rising inflation could increase with the start of the new Trump administration next week. Additionally, if the Gaza ceasefire continues permanently, the reduced geopolitical risks might put downward pressure on gold prices. Still, based on past events, it seems unlikely that the ceasefire will last long.
Gold-Dollar Expected Range: 2710–2680
Note: The above information does not guarantee profits. Please make your own decisions when trading.