Gold edged higher on Tuesday after it rebounded from last Friday's two-week low of $2,325. The increase was driven by a moderate fall in the US dollar and ongoing geopolitical tensions in the Middle East.
If market sentiment is still influenced by the hawkish Fed minutes and previous strong US economic data, it is likely to support the dollar again in the near future. However, markets are still waiting for key US inflation data this week.
Meanwhile, the price of gold is now at $2,354.65 which is up by 0.15% since it opened in the Asian trading session this morning.
US consumer confidence survey data is scheduled for Tuesday along with speeches by Neel Kashkari, Mary Daly and Lisa Cook as further indications of the Fed's next move. Hawkish comments and signs of inflation could push back the prospect of the first rate cut.
The US Core Consumer Price Index (PCE) will take center stage on Friday. If there is a strengthening, an increase in the USD will occur and put selling pressure on the price of gold in the market.
From a technical point of view, the market positioned $2,430 as a resistance level. Any bounce above that level would further pull the price to the all-time high of $2,450 and to the psychological barrier of $2,500.
If there is a bearish bounce, the first target will be placed at the $2,300 position. A breach of that level could drag the yellow metal to $2,268 followed by the $2,220 level.
