Gold prices (XAU/USD) have rebounded, supported by central bank demand and a weaker US Dollar.
Key Factors:
- Central Bank Demand: Central banks continue to be major buyers of gold, supporting its price.
- Geopolitical Risks: The ongoing tensions between China and Taiwan continue to support the safe-haven appeal of gold.
- US Dollar: The US Dollar has weakened, influenced by the release of the US Consumer Price Index (CPI) data and expectations for further Fed rate cuts.
Technical Analysis:
- Upward Trend: Gold prices are in a short-term upward trend, with potential for further gains.
- Resistance Levels: The $2,670 level is a key resistance level.
- Moving Average Convergence Divergence (MACD): The MACD is in positive territory, indicating a bullish trend.
Overall Outlook:
Gold prices are likely to remain volatile, influenced by economic data, market sentiment, and geopolitical risks. Traders should monitor technical indicators for signs of a trend reversal.
