The gold market is seen to be still trading in a "hedging" way around the price level of $2,400-$2,300. The CPI and Producer Price Index (PPI) inflation data reports failed to convince gold buyers even though the two data reports were seen to have shown clear indications that inflation readings in the United States were seen to decrease.
This is because, at the recent FOMC meeting, Fed chairman Jerome Powell clearly stated that they see the inflation data that has been reported recently still does not convince the Fed of the actual projection of inflation in the future.
Even so, based on the SEP Economic Projection report at the recent FOMC meeting report, the Fed is seen as likely to cut interest rates at least once in 2024, which is by 25 basis points. But the implementation date is still unclear.
Technical Analysis
Based on the daily chart, gold is seen to be still trading as a "hedging" since the beginning of this week. The price level of $2,287 is seen to be the focal price.
If the price is successfully broken, the price of gold is seen to be able to trade low until the price level of $2,250, where this price level is seen to be the main focus of gold buyers.
But if it's the other way around, the $2,350 price level will be the main obstacle for gold to continue trading high. Any further increase can push the price of gold to trade at least up to the level of $2,388.
