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Gold stays supported amid Middle East de-escalation, but the US CPI could erase the gains
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FUNDAMENTAL OVERVIEWGold continues to extend gains as the de-escalation in the Middle East and the hopes for a US-Iran deal reduced inflation and Fed tightening risks.
The next test will come next week with the release of the US CPI report.
A hot report will likely trigger a selloff in gold, with traders increasing rate hike bets.
A soft report, on the other hand, will reduce further the risk of Fed tightening and give gold another boost.
GOLD TECHNICAL ANALYSIS – 4 HOUR TIMEFRAMEOn the 4 hour chart, we can see the price pulled back and bounced near the broken resistance-turned-support.