Gold prices fell to around $2,670 an ounce as markets focused on US inflation data and the Federal Reserve’s speech – XAUUSD H4

On Monday, gold prices extended last week’s losses, falling to around $2,670 an ounce. Markets will be closely watching upcoming US inflation data and a series of Fed officials’ speeches this week to assess the Fed’s interest rate path after Trump’s re-election. Last week, the Fed cut interest rates by 25 basis points as expected, but stressed that it will maintain a cautious and measured pace of future rate cuts.

At the same time, markets speculate that the Fed may slow the pace of rate cuts as the newly elected president’s policy propositions – including tariff increases, tax cuts, and deregulation – are expected to widen the fiscal deficit and exacerbate inflation expectations. Still, investors are pricing in a 65% chance that the Fed will cut rates by 25 basis points in December. 

In addition, traders will digest other key US economic data this week, including the Producer Price Index, weekly jobless claims, and retail sales data to further gauge the resilience of the US economy and its impact on monetary policy.

Market Directional Appetite: Bearish

Despite gold’s safe-haven appeal, it is likely to face more downward pressure in the near term, given the potential upside effect of US policy on the inflation and interest rate outlook. However, if inflation accelerates and the Fed maintains a cautious stance, long-term demand for gold will remain supported.

$2,707 upper first-line resistance, $2,747 topside resistance,

The first line of support is $2,643 below, and the second line of support is $2,605 below.

Risk Disclaimer: This report is for informational purposes only and does not constitute financial advice. All investments involve risk and past performance is no guarantee of future results. Please consult your financial advisor for personalized investment advice.