Gold rises ahead of US CPI data due to Moody’s bank downgrades and the Fed’s stable rates hints.
Gold prices were slightly higher on Wednesday, staying within the wide range set on Friday. The trade community awaits the U.S. Consumer Price Index report tomorrow.
Spot Gold has increased by $5.335, or 0.28%, to $1930.44, following a month-low of $1,922. U.S. gold futures are also moving upward.

Gold prices are slightly higher on Wednesday but remain within the wide range set last Friday. The precious metal is in the spotlight as the trade community awaits the U.S. Consumer Price Index report tomorrow.

Gold’s market has been affected by economic statistics and pronouncements, including a decline in the dollar index and decreased Treasury yields due to Moody’s downgrade of credit ratings for American banks. This downgrade also affected the banking industry, leading to a fall in European and American bank stocks. Additionally, Italy’s surprise 40% windfall tax on lenders further shook the business.

Imports reached an 18-month low in June due to a decrease in the trade deficit, primarily due to firms limiting foreign capital goods purchases. This resulted in the lowest levels of imports in over a year and a half.
Fed members discuss interest rate increases, with Thomas Barkin suggesting data analysis is necessary before making decisions. Patrick Harker of the Philadelphia Federal Reserve argues that interest rates may not change significantly unless significant economic data changes occur.

Gold’s short-term outlook remains neutral due to the current economic situation, including a depreciating dollar, shifting yields, and the upcoming Consumer Price Index report. Investors are monitoring currency and equity patterns in emerging markets, especially as global interest rates diverge. Barrick Gold Corp. reported Q2 profits exceeding expectations, highlighting gold’s continued attractiveness during unstable times.

Technical Analysis
Gold (XAU) is trading below its 200- and 50-hour moving averages, indicating a negative attitude. The 14-4H RSI shows less momentum and is rising towards neutral or 50.
Gold confronts challenges because it is above its support range but below its resistance range. The short-term market attitude is pessimistic, but if buyers can surpass the 50-4H and 200-4H moving averages, the situation might quickly shift.

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