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In an unexpected turn of events, XAUUSD experienced a significant surge, resulting in a false breakdown above the $2170 resistance level. Presently, it is trading around $2177, following yesterday's Gold session where it briefly touched $2200 before dropping by $24 at the time of writing.
In terms of the impact news, we observed unpredictable fluctuations as the strength of the USD fluctuated erratically. Specifically, during last night's trading session, the USD occasionally depreciated against several foreign currencies, contributing to intermittent surges in the gold price, reaching as high as $2200 per ounce.
Looking ahead, the global gold market exhibited minor fluctuations as investors eagerly await US inflation data later this week. This data will provide insights into when the US Federal Reserve (Fed) may initiate monetary policy loosening throughout the year.
Regarding future prospects, XAUUSD may experience another decline if personal consumption expenditure data surpasses expectations. Nevertheless, this valuable metal is anticipated to swiftly regain its upward momentum.
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Gold price (XAU/USD) continues with its struggle to gain any meaningful traction and remains confined in a narrow trading band, below the $2,200 mark through the early European session on Wednesday.