Gold rebound cools ahead of key US inflation data
Despite the recent two-day rebound, gold is struggling to sustain momentum as bulls pause ahead of today’s US CPI report. The US Bureau of Labor Statistics will release February’s inflation figures at 13:30 GMT. These data are crucial, as headline and core inflation readings influence expectations for the Fed’s policy moves. A hotter-than-expected CPI could extend the recent pullback in precious metals, while a softer reading might reignite bullish momentum and push gold back above $5,200.
Can bulls maintain momentum above $5,100?
From a short-term technical perspective, $5,110/00 has emerged as a strong new support level. As of this writing, gold is trading near $5,180. Moving ahead, as long as the price remains above the $5,110/00 (20- SMA) level, the short-term positive trend will continue. If gold regains momentum and overcomes the $5,200 level again, it might go on to the next supply area of $5,240/70. On the downside, there is a danger that if the metal fails to settle above $5,100, a close below this support level could trigger further consolidation or a corrective phase.
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* Past performance is no guarantee of future results.
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