The United States (US) consumer price index (CPI) data released yesterday showed a decrease of 2.9%, lower than expected at 3.0%.
This further strengthens the expectation of the decision of the Federal Reserve (Fed) to cut interest rates at the September meeting.
However, the reaction of gold prices has raised question marks, as investors expect gold prices to rise if the CPI data released is weak.
Based on the daily chart, the price of gold made a temporary recovery after a significant price drop yesterday.
On the XAU/USD chart which measures the value against the US dollar, yesterday's price has fallen from the level of 2480.00 to the level of around 2437.00 before making a recovery to the level of 2457.00.
If the price wants to continue rising higher, the 2465.00 level will be the target for the price to reach to test the zone.
If the price manages to break through the 2465.00 level, the next target is at the 2480.00 level for the price to test the resistance zone.
Meanwhile, for the expectation of bearish movement, the price can reach the level of 2440.00 and give a signal for a lower decline.
If the level is successfully broken, the 2432.00 level is likely to be hit to record the latest low.
