Gold prices climbed further on Wednesday after the release of US economic data that missed expectations. Lower-than-anticipated Consumer Price Index (CPI) and stagnant Retail Sales figures fueled speculation of an earlier-than-expected interest rate cut by the Federal Reserve.

Key Drivers:

• Softer US Inflation: CPI data came in lower than expected, indicating a continuation of disinflation.
• Disappointing Retail Sales: Retail Sales growth stagnated in April, raising concerns about the US economic outlook.
• Potential Rate Cuts: Weaker data suggests the Fed might consider lowering interest rates sooner, boosting the appeal of Gold.
• Geopolitical Tensions: Ongoing geopolitical issues continue to underpin safe-haven demand for Gold.

Technical Outlook: Uptrend Resumes

• Gold Price Rebound: Gold recovered to near its May highs after finding support and resuming its short-term uptrend.
• Next Target: The next potential resistance level is around $2,400, close to April’s highs.
• Confirmation Signals: A break above the May 10th high of $2,378 could solidify the upward trend.
• Bullish Indicators: Medium and long-term charts also display bullish signals, supporting further Gold price increases.

Gold’s Allure:

Lower interest rates reduce the opportunity cost of holding non-yielding assets like Gold. This, combined with ongoing geopolitical tensions, is driving investor demand for Gold as a safe haven. Additionally, central banks continue to accumulate Gold reserves as a hedge against potential risks.