Gold price (XAU/USD) experiences significant selling pressure after hotter-than-expected US Consumer Price Index (CPI) data for February. Sticky inflation reduces the likelihood of early Federal Reserve (Fed) rate cuts, increasing the opportunity cost of holding non-yielding assets like Gold.

Key Factors:

• Inflation Impact: Stubborn CPI figures strengthen the US Dollar and boost bond yields, weighing on Gold.
• Fed Outlook: Market expectations for near-term rate cuts diminish, dampening Gold’s appeal.
• Technical Correction: After its recent winning streak, Gold could undergo a price or time correction due to widening divergence from the 20-day EMA.

Technical Outlook:

• Support Levels: December 4 high ($2,145) and December 28 high ($2,088) offer potential support.
• Overbought RSI: The Relative Strength Index (RSI) in overbought territory suggests a possible short-term correction.