Gold is currently trading near the upper end of its retracement zone, defined by $3228.38 to $3164.23, with the recent bottom at $3201.95. Should downside pressure persist, traders will look to the 50-day moving average at $3137.70 for initial support.
Below this, a break toward $3000–$2956.56 cannot be ruled out. That zone represents the bottom of the intermediate range and aligns with price levels seen before the last major escalation in the U.S.-China tariff dispute.
If buyers are seeking value, they may begin to accumulate positions around the 50-day MA. However, strong-handed sellers could trigger a deeper correction that erases the entire trade war premium built over the past month.
Market Eyes CPI for Fed Clues
Tuesday’s U.S. Consumer Price Index release remains a key event for traders looking for signals on the Federal Reserve’s rate outlook. Softer inflation could reignite Fed cut bets, offering some relief to gold. But in the absence of dovish data, dollar strength and reduced geopolitical risk may continue to weigh on the metal.
