Gold Technical Analysis – Eyes on the US CPI report
Gold is consolidating as markets await the US CPI report. The Fed is anticipated to cut rates by 25 bps next week, with two more cuts expected in 2025. The overall trend remains bullish due to the Fed's easing cycle, although short-term corrections may occur based on rate cut expectations. Currently, the market is stable with three rate cuts projected by the end of 2025, despite strong US economic data.
Fundamental Overview
Gold continues to consolidate in a tight range as the markets await the US CPI report due on Wednesday. Overall, nothing has changed in terms of the fundamentals. The Fed is expected to cut by 25 bps next week and deliver at least two more rate cuts in 2025.
In the bigger picture, the trend should remain bullish amid the Fed’s easing cycle, but the short-term corrections will likely be triggered by the repricing in rate cuts expectations. For now, the market looks fine with three rate cuts by the end of 2025 as the pricing remained unchanged despite lots of strong US data.
