Gold (XAU) rebounded towards $4,150 on Thursday as the US dollar and Treasury yields eased after the CPI selloff. But persistent inflation keeps further rate hikes by the Fed in focus, while heavy government borrowing could limit relief in bond yields. The market now awaits US producer prices and retail sales data for clues about the Fed’s next move. In my view, the break above $4,200 would strengthen the recovery in the gold price, while a drop below $3,900 would increase the risk of deeper correction. This article presents the economic drivers and technical levels that may shape the next move in gold.
Gold Price Forecast: Softer Dollar Fuels Rebound After Hot CPI
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Key Points:
- Hot inflation keeps Fed rate hike risks in focus despite gold’s rebound.
- A break above $4,200 would strengthen gold’s recovery.
- A drop below $3,900 could trigger a deeper correction.