Upcoming Catalysts
Next week’s trading will likely be influenced by the June Consumer Price Index (CPI) report. Economists anticipate a 0.2% rise in headline CPI, with core CPI expected to remain unchanged. A cooler-than-expected inflation reading could reinforce rate cut expectations.
Fed Chairman Powell’s two-day Congressional testimony, beginning Tuesday, will be closely monitored for insights into the central bank’s stance on future rate decisions.
Weekly Forecast
The short-term outlook for gold appears bullish. With ongoing expectations of Fed rate cuts, potential dovish signals from Powell, and the possibility of softer inflation data, gold prices may continue their upward movement. The technical setup supports this view, with the price action suggesting a potential test of the $2,450 level.
However, traders should remain alert to any surprises in economic data or unexpected shifts in Fed rhetoric that could alter this trend. A break below the $2,363.74 support level could signal a short-term reversal.
As the market anticipates next week’s events, particularly the CPI report and Powell’s testimony, volatility in gold prices may increase. Traders should be prepared for potential price swings and adjust their strategies accordingly. The convergence of fundamental factors and technical indicators suggests that gold could test higher levels if the current narrative of economic softening and impending rate cuts persists.
Source: Gold Prices Forecast: Can CPI Data Ignite Rally to New Record High?
