Gold – Bulls Maintain Control Ahead of Key US Inflation Data

Gold remains on a strong footing, edging higher in early Monday trading and extending its recovery for the third consecutive day.

The yellow metal has regained ground after last week’s sharp decline, bolstered by increasing signs that the Fed may opt for a 50 basis points rate hike in September.

Weak US economic data suggests a worse-than-expected scenario, with last week’s discussions of a potential US recession—following the Fed’s prolonged reassurances of a soft landing—sparking market panic.

While the situation has calmed, investors remain cautious.

The markets are now focused on the upcoming release of the US inflation report for July, which is expected to provide further clarity on the Fed’s next monetary policy moves.

Geopolitical tensions also support the positive outlook for gold.

Technical indicators on the daily chart are fully bullish, contributing to the optimistic outlook. Monday’s fresh push higher broke above the 61.8% Fibonacci retracement of the $2483/$2353 decline at $2433, with a close above this level expected to reinforce bullish signals.

However, trading may slow ahead of the US CPI data release.

The next targets are at $2452 (76.4% Fibonacci retracement) and $2477 (August 2 spike high), with the all-time high at $2483 within reach.

The rising 10DMA ($2422) and the broken 50% Fibonacci retracement level provide solid support, expected to protect the downside and maintain the bullish structure.

Res: 2452; 2462; 2477; 2483
Sup: 2433; 2422; 2418; 2403