XAUUSD

Gold is holding above the pivot level of $3578.65 as the new week begins, awaiting dovish signals from US inflation data. For gold investors, the most critical days of the week will be Wednesday (PPI) and Thursday (CPI). If a slowdown or below-expectation figures are seen in US inflation, as the markets anticipate, it will strengthen the perception that the FED has reached the end of its rate hike cycle, weakening the Dollar and increasing demand for Gold, a non-yielding asset. In this positive scenario, the price is expected to quickly target the resistance level of $3617.41. Overcoming this barrier could push the uptrend to the levels of $3638.79 and then $3668.85. Conversely, if inflation proves stubborn and comes in above expectations, it could trigger a rally in the Dollar, creating strong selling pressure on Gold. In this case, a pullback to the support level of $3557.27 could occur, and if broken, a retreat to the main support at $3518.51 may become inevitable.