XAUUSD Market Analysis | US PPI and CPI Data Releases

Good morning, dear traders! Today, we bring you the XAUUSD technical analysis, with a key focus on the upcoming US PPI and CPI data releases. Let’s dive into the analysis without further delay.
XAUUSD Market Analysis | US PPI and CPI Data Releases

XAUUSD Market  Technical Analysis with Key Focus on Upcoming US PPI and CPI Data Releases:

This week, the XAUUSD market squarely focuses on the US PPI data, set to unveil on Tuesday, followed by the CPI data on Wednesday. The unexpected surge in consumer prices during the first quarter hinted that the Federal Reserve might ease off on interest rate cuts this year. However, April’s disappointing job growth numbers have reignited speculation, with some investors wagering on two potential 25 basis point rate cuts. Yet, this outlook is contingent upon inflation softening and further market developments. Additionally, Tuesday saw Federal Reserve Chairman Powell and European Central Bank Governing Council Member Knott jointly addressing a pivotal meeting, demanding keen scrutiny.

Gold’s trajectory yesterday saw a descent from 2364 to a low of approximately 2332. Unless one initiated selling at the outset, keeping pace with this trend proved challenging. Those not inclined towards aggressive trading likely found yesterday’s market conditions daunting, resulting in a dearth of suitable opportunities.

Following yesterday’s downturn, it seems that the peak of this cycle is capping at 2378, forming a formidable barrier. Nevertheless, should the Bollinger Band remain intact, fluctuations at elevated levels could persist, rendering a definitive long or short trend elusive.

Today’s critical support level stands at 2330. Failure to breach this threshold suggests a probable continuation of the rebound. Resistance levels are poised around 2350 and 2365.

Consider initiating a buy position within the range of 2330-2335 today, with a stop loss set at 2326. Alternatively, await the first resistance point at 2350 for selling or target 2365, exercising caution with modest lot sizes. Adapt your approach dynamically to the evolving market conditions for an enhanced success rate.

While these strategies offer guidance, remember that market dynamics evolve rapidly. Flexibility and real-time adjustments in response to prevailing trends are imperative for maximizing success.

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