Gold Prices (XAU/USD) remain stuck in a tight range so far this Friday, trading around $4,210, as investors remain wary ahead of the US Personal Consumption Expenditures (PCE) Price Index. The precious metal has been trading in a tight range for nearly a week, with traders awaiting confirmation of sustained trends in the Federal Reserve’s favored measure of inflation. The data will likely move markets this week and bring a fresh wave of movement in Gold.
USD Strength Capped by Dovish Fed Expectations
Although the greenback pulled back slightly from lows hit last week, traders are still pricing in one more interest rate cut by the US Federal Reserve and capping gains for the USD. With market forecasters already fully factoring in a bank bill future that has an essentially risk-free official reduction next week, this is fundamentally supportive of Gold’s zero-yielding status. Together with this, the global risk-off theme and a wary market mood are keeping interest in the safe-haven commodity high, as it heads for modest weekly losses amid range-bound trading.
Technical Outlook: Gold Break Needed for Clarity
XAU/USD has been trading in a channel of $1,691.64-$1,851.06 over the past week and requires a close on either side to signal the next trend in the medium-term. Resistance can also be seen near $4,245-$4,250 , and a further hurdle lies around $4,278. If Gold extends the recovery move beyond this region, the $4,300 round figure could return to market quotes. On the negative side, the support is seen at $4,163. A sustained move below this level could send the metal to the $4,100-40 area. However, a drop is expected to be met with fresh buying amid continued global economic and geopolitical uncertainty.
