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      CPI Hits! Gold Nears Bottom Zone

      Tank

      Summary:

      Traders are awaiting the release of the U.S. Consumer Price Index report for June.

      Buy

      XAUUSD

      EXP
      PENDING

      3900.00

      Entry Price

      4600.00

      TP

      3600.00

      SL

      4050.82 -1.82 -0.04%

      --

      Point

      PENDING

      3600.00

      SL

      CLOSING

      3900.00

      Entry Price

      4600.00

      TP

      Fundamentals
      U.S. President Trump has reinstated the blockade on Iranian ships passing through the Strait of Hormuz and demanded that Iran pay a 20% fee on all other goods transported through the waterway. Trump also stated that the U.S. will continue to target Iran, saying, “We’re going to hit them hard tonight, and we’re going to hit them hard tomorrow.” U.S. Consumer Price Index (CPI) inflation data is set to be released later today and is drawing significant attention. Analysts expect the overall CPI for June to decline by 0.1% month-over-month, while the core CPI is projected to rise by 0.3% over the same period. If the actual results come in weaker than expected, it could put pressure on the U.S. dollar and provide short-term support for dollar-denominated commodity prices.
      Waller believes that, at current policy interest rate levels, there is still a possibility that inflation will gradually return to the 2% target, but there is also a risk that data in the coming weeks will show inflation remaining elevated or even accelerating again. If this were to occur, the Federal Reserve would need to further tighten monetary policy in the near term. He is particularly concerned that recent price pressures are gradually spreading to broader sectors of the economy—rather than being limited to the effects of higher import tariffs or rising energy prices—which could indicate that the U.S. is facing more persistent systemic inflationary pressures that require a response through interest rate hikes.
      Technical Analysis
      On the four-hour chart, the Bollinger Bands are widening downward, the moving averages are diverging downward, and the MACD fast and slow lines continue to trade below the 0 line, indicating that the bearish trend remains intact. The RSI stands at 36, indicating the market has entered oversold territory and a rebound could occur at any time. On the daily chart, the Bollinger Bands are widening downward, and the moving averages are diverging downward. With the RSI at 38, market sentiment remains deeply pessimistic, making it highly likely that the price will test the lower Bollinger Band. However, since gold is nearing its bottom, the recommended strategy is to buy on dips.
      CPI Hits! Gold Nears Bottom Zone_1
      CPI Hits! Gold Nears Bottom Zone_2
      Trading Recommendation
      Trading Direction: Buy
      Entry Price: 3900
      Target Price: 4600
      Stop-Loss Price: 3600
      Support Levels: 3900, 3600, 3500
      Resistance Levels: 4200, 4300, 4600
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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