Gold price rises as US inflation data supports further Fed easing

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Gold price rises as US inflation data supports further Fed easing
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Gold prices prolonged their uptrend on Wednesday following the release of inflation figures in the United States (US).

Gold price climbs, remaining above $2,700, ignoring high US yields. US CPI data confirms ongoing disinflation, bolstering expectations for a Federal Reserve rate cut next week. Market anticipates a potential rate cut, with swaps pricing a 92% likelihood, focusing next on upcoming PPI and jobless claims data. Gold prices prolonged their uptrend on Wednesday following the release of inflation figures in the United States .

With that said, the XAU/USD remains bullishly biased. Bullion’s first resistance would be $2,721. On further strength, the next stop would be $2,750, followed by the all-time high of $2,790. Conversely, if XAU/USD tumbles below the 50-day Simple Moving Average of $2,685, the next support would be the $2,650 figure. Once surpassed, the next support would be $2,600, followed by an upsloping support trendline and the 100-day Simple Moving Average in the $2,580 to $2,591 area.

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