Gold was little changed late in the New York session yesterday as investors prepared to await US Consumer Price Index (CPI) data for February which is expected to be unchanged.
The core data is expected to be flat and will weigh on the value of the US dollar and increase the price of gold in the market.
Meanwhile, the price of gold is at $2,181.27 which is down by 0.07% since the opening of trading this morning.
Last week, gold prices hit an all-time high of $2,195.15, which is very close to the difficult upper level of $2,200 following Fed Chairman Jerome Powell's testimony in the US Congress.
At the time, he acknowledged that the US inflation rate was approaching the 2% target and the Fed was on a mission to ease its policy. However, the certainty of the interest rate cut this year depends on the economic data that the central bank is looking forward to.
He said again, the Fed will not be in a hurry to reduce the cost of the loan in the near future.
At exactly 8.30 tonight, the market will be presented with the Consumer Price Index (CPI) data that is able to change the price of the XAU/USD pair for now. The inflation report, which is currently at 3.1%, is expected to remain unchanged.
However, if there is price volatility in the gold market, the technicals show it will drop to a low level of $2,154.17 and then to a support level of $2,150.00.
If otherwise, the price of the yellow metal will surge again to break through the all-time high above $2,200.
