Gold Price Forecast: $3,399 Resistance in Focus as Inflation Data Looms
Gold steadies near $3,388 as traders eye U.S. inflation data. Resistance at $3,399 is key; a breakout could target $3,420–$3,440.
Quick overview
- Gold prices remained stable as investors await US inflation data, particularly the PCE index, which may influence interest rate cut timelines.
- Political uncertainty surrounding President Trump's actions against a Fed governor raises concerns about the Fed's independence, potentially increasing gold demand.
- Currently trading near $3,388, gold shows resilience supported by trendline momentum and demand for defensive assets.
- Traders are cautiously optimistic, with a bullish outlook as long as gold remains above $3,373, while inflation data will be crucial for future price movements.
Gold held steady on Wednesday as investors wait for US inflation data. Traders are weighing whether the numbers, especially the Fed’s favorite PCE index, will move the interest rate cut timeline.
Political uncertainty still looms. US President Donald Trump’s attempt to fire a Fed governor has raised questions about the Fed’s independence. Analysts say any perceived erosion of central bank credibility will further boost gold demand.
But gold has shown some resilience. It’s trading near $3,388 after climbing from August lows, supported by trendline momentum and ongoing demand for defensive assets.
Gold (XAU/USD) Levels to Watch
Gold’s 2-hour chart is pressing against $3,399, a key resistance zone. The 50-period simple moving average at $3,373 is a support base, bullish for the short-term.
- RSI 57 not overbought.
- MACD flattening at zero momentum stabilizing.
- Candlestick patterns show rejection wicks at $3,360, buying the dip.
As long as gold holds above $3,373, the bigger picture is still bullish. A close above $3,399 could accelerate to $3,420 and $3,440, previous supply zones. Failure to break higher will see a pullback to $3,351 and $3,333, both major supports.
Gold Trade View for Investors
For traders, it’s balanced but leaning bullish. Conservative will wait for a close above $3,399, targeting $3,420–$3,440. Aggressive will enter earlier, using stop-loss below $3,351 to limit downside.
Looking ahead, inflation data will be the key. A soft number will boost momentum higher, a hot number will pressure gold temporarily as yields and the dollar rise.
In the end, gold’s resilience to political risks and shifting Fed expectations means its safe-haven appeal is still intact. For long-term investors, the case for gold is still strong, especially in a market where uncertainty and inflation risks are still fluid.
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