Gold Price Holds Steady Ahead of U.S. Inflation Data

Weaker-than-expected jobs data previously led markets to scale back expectations for a September rate hike, according to market reports.

Inflation Reports Drive Near-Term Trading Focus

Market attention has shifted decisively to upcoming U.S. economic releases. The U.S. consumer price report is scheduled for release on Wednesday, followed by producer price figures on Thursday.

“Markets expect U.S. CPI to rise 0.1% month-on-month in July, and a softer reading following the recent weak jobs report could reduce expectations of further monetary tightening,” said Soojin Kim from MUFG, as cited in market commentary.

Technical Chart Analysis Points Toward $4,500 Resistance

Gold is positioned for a potential rebound toward key resistance at $4,500 per ounce, based on daily chart indicators analyzed by Quek Ser Leang, senior technical strategist at UOB Global Economics & Markets Research.

The daily moving average convergence divergence indicator is trending steadily higher, according to the UOB research note. Furthermore, the daily declining trendline originating from February’s record high sits near $4,500 per ounce.

A clear break above that $4,500 threshold would signal that the previous low of $3,943 per ounce represents a more durable market bottom than many analysts initially anticipated, according to the UOB strategist’s outlook. Spot gold traded 0.6% lower at $4,365.20 per ounce during the initial session windows.

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