Gold rises before the US IPC inflation.

• The United States and China reach a provisional commercial agreement after the conversations in London, which limits the strength of gold in the midst of a decrease in the demand for safe refuge.
• It is expected that US consumer price index (CPI) for May reflect an increase in inflation.
• The IPC publication molds the expectations of interest rates of the Fed, representing a direct threat to gold.

The gold (Xau/USD) is listed up during the European session on Wednesday, since investors adopt a cautious posture before the key inflation data of the US inflation. The precious metal wins land modestly, oscillating above $ 3,330 at the time of writing.

Market participants are closely observing the next publication of the US Consumer Price Index (CPI) for May on Wednesday, which is expected to provide critical information on the dynamics of inflation and the monetary policy of the Federal Reserve (FED).

Consensus forecasts suggest that US general inflation was accelerated at an annual rate of 2.5% in May, compared to the 2.3% increase observed in April. During the same period, the underlying CPI inflation is expected to exclude volatile food and energy prices, rise to 2.9% from 2.8%.

The increase in inflation and the perspective of higher interest rates by the Fed often support the US dollar (USD), which weighs on non -profitable assets such as gold.

Daily Gold Market Summary: Xau/USD promoted by the commercial agreement between the US and China and US CPI data.

• The US and China reach a trade agreement that includes the elimination of China’s rare land export restrictions, which will probably offer some relief to the US supply chain. These minerals are crucial for sectors such as technology, defense and green energy, where they are essential for products such as semiconductors, electric vehicles (EVS) and military hardware.
• The high -level negotiations between the two countries in London resulted in a provisional framework, which is now waiting for the formal firm of the US president Donald Trump and the Chinese president Xi Jinping.
• On the other hand, Trump received a favorable development on Tuesday after a Federal Court of Appeals ruled that his “Liberation Day” tariffs can remain in force, for now. The decision temporarily reverts a ruling of a lower court last month, in which the US Court of International Trade blocked tariffs, citing procedure violations in how they were promulgated.
• Regarding US inflation data, it is projected that the IPC and the underlying IPC increase 0.2% and 0.3%, respectively, in monthly terms.
• On Thursday, the US will publish the data of the Production Price Index (IPP) for May, which is also expected to show an increase in general inflation from the producer level.
• These figures will probably influence market expectations about the trajectory of the Fed policy. The Fed maintained the federal funds rate without changes in the range of 4.25% –4.50% at its May meeting, but those responsible for the policy have indicated that its decisions continue to depend on the data.
• According to the CME Fedwatch tool, market participants expect the Fed to maintain interest rates without changes in June and July meetings, with a probability of 52.2% of a rate cut already incorporated for September.

Technical Gold Analysis: Xau/USD flirts with $ 3,300 – Is a possible rupture close?

The price of gold is currently maintained above the 3,300 $ brand, oscillating around $ 3,330 at the time of writing, since the market finds short -term support in this range.

On the positive side, resistance is being formed near the psychological level of $ 3,350, and a break above this barrier could pave the way for a movement to the maximum of Friday of around $ 3,375.

Above, the psychological level of 3,400 $ limited the bullish potential last week. If buyers clear this area and the bullish impulse gains traction, a movement towards the April maximum of April at 3,500 $ could be possible.

However, the indicator of the Relative Force Index (RSI) was flattened near the neutral zone of 50 in the daily graph, pointing out a lack of impulse and an indecision among the operators.

In case of downward movement, the immediate support for the price of gold is in the simple mobile average (SMA) of 20 days at $ 3.310, just above the next psychological support zone of the 3,300 $ brand, and before the Fibonacci recoil level of 23.6% of the increase from January to April by $ 3,291.

Below, the 50 -day SMA could provide an additional support layer around $ 3,275, while the tip of a symmetric triangle graphic pattern could offer another important mattress for the downward price action at $ 3,240.