Spot Gold Rebounds Ahead of U.S. Inflation Reports
Spot Gold experienced a volatile session with further gains following Monday's bounce, while the U.S. Dollar Index (DXY) was steady at 101.60.
Traders are focusing on today’s Consumer Price Index (CPI) report for insights into potential Federal Reserve rate cuts.
A 50-basis point reduction is expected at the September 17-18 meeting, and fewer anticipate a 25-basis point cut.
The CPI report is projected to show August inflation at 2.6% year over year and 0.2% month over month, with producer price data due Thursday.
Based on technical indicators, the Relative Strength Index (RSI) is positive, the Moving Average Convergence Divergence (MACD) is negative, and the Average Directional Index (ADX) shows a ranging market.
Due to the bearish engulfing candlestick posted on Friday suggests that renewed supply may return.
Traders should monitor signals closely and adjust risk strategies if the $2,480-$2,488 level is visited as a break, which would support further stop-losses that may be triggered to $2,456-58 before any potential bullish correction.
Daily Chart Spot Gold
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