GOLD recovers strongly, market will wait for US CPI dataOANDA:XAUUSD rebounded strongly in Asian trading on Wednesday (June 11) after a sharp decline in the New York session on Tuesday. The current gold price is around $3,341/ounce, up nearly $20 on the day.
Traders are awaiting the release of the latest US Consumer Price Index (CPI) data for May. Estimates suggest that prices are likely to rise as US households feel the impact of tariffs imposed by the Trump administration. As a result, the Federal Reserve is likely to remain in a wait-and-see mode, keeping interest rates in the range of 4.25%-4.50%."
Economists expect the US CPI to rise to 2.5% year-over-year in May from 2.3%, and the core CPI to rise to 2.9% year-over-year from 2.8%.
OANDA:XAUUSD rose in Asian trade on Wednesday, even as the US and China said they had agreed on a plan to ease trade tensions during talks in London.
According to Bloomberg, easing between the world's two largest economies would be negative for safe-haven assets like gold, and the lack of a decline in gold prices suggests investors are waiting for more developments.
Gold prices have risen more than 25% this year as US President Donald Trump’s aggressive tariff policies have changed geopolitical dynamics, prompting central banks to buy gold to divest from US assets.
Bloomberg also said investors are looking ahead to Thursday’s US Treasury bond auction and weak demand could boost gold’s appeal as a safe haven.
Technical Outlook Analysis OANDA:XAUUSD
On the daily chart, after receiving support from the confluence of the EMA21 with the 0.382% Fibonacci retracement, the important support area noted by readers in the previous editions, gold has recovered once again.
The short-term upside target remains unchanged at $3,371 of the 0.236% Fibonacci retracement.
Meanwhile, the Relative Strength Index (RSI) rising from 50 is also a good signal for bullish momentum, and the large gap between the overbought area and the RSI shows that there is still a lot of room for upside ahead.
During the day, as long as gold remains above $3,292, it remains bullish in the short term with targets of $3,371 in the short term, more than the raw price point of $3,400. The positions will also be listed as follows.
Support: $3,300 – $3,292 – $3,250
Resistance: $3,371 – $3,400
SELL XAUUSD PRICE 3376 - 3374⚡️
↠↠ Stop Loss 3380
→Take Profit 1 3368
↨
→Take Profit 2 3362
BUY XAUUSD PRICE 3249 - 3251⚡️
↠↠ Stop Loss 3245
→Take Profit 1 3257
↨
→Take Profit 2 3263
