Gold (XAU/USD) remains supported despite pulling back from recent highs, as traders stay cautious ahead of the upcoming US Consumer Price Index (CPI) release.
Although strong US Nonfarm Payrolls data earlier this week reduced expectations for a near-term Federal Reserve rate cut, the US Dollar has struggled to gain further traction. Softer jobless claims and signs of weakness in the labor market continue to fuel expectations that the Fed may still cut rates later this year, which helps support gold prices.
At the same time, a generally weaker tone in global equity markets has increased demand for safe-haven assets, providing additional support for gold.
From a technical perspective, momentum signals are mixed. While bearish pressure eased after the recent decline, indicators such as MACD and RSI suggest cautious optimism rather than a strong bullish breakout. Traders are likely to wait for CPI data before committing to new positions.
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