Gold (XAU/USD) continues its upward trajectory from the $2,485 level, marking its third consecutive day of gains on Wednesday. The precious metal saw a fresh weekly high during the early European session, with bulls aiming to push beyond the $2,525-$2,526 resistance zone. The U.S. Dollar (USD), having recently experienced gains, is struggling to maintain its momentum and is retreating from its monthly peak, largely due to expectations of a dovish stance from the Federal Reserve (Fed). This shift is contributing to increased demand for the non-yielding gold.
The overall weaker risk sentiment is driving safe-haven flows, propelling Gold prices closer to their all-time highs. However, traders may choose to pause their buying activity as they await the release of the latest U.S. Consumer Price Index (CPI) report.
This critical data will influence market expectations regarding the magnitude of the Fed’s anticipated rate cut in September and could determine the next significant movement for the precious metal. Despite this, the prevailing fundamental outlook suggests that the path of least resistance for XAU/USD remains upward.
