Core Viewpoint - The current gold price is experiencing a mild pullback after a significant surge, with the market awaiting the next catalyst for movement [1][2]. Group 1: Market Performance - On Wednesday, the spot gold price surged, with an increase of $59.13, representing a 1.18% rise, closing at $5084.34 per ounce [2]. - Despite strong U.S. non-farm employment data exceeding market expectations, gold managed to regain upward momentum due to robust long-term buying support [1][2]. Group 2: Economic Indicators - Investors are focused on the upcoming U.S. January Consumer Price Index (CPI) data, with expectations that overall and core inflation rates will decline to 2.5% from 2.7% and 2.6%, respectively [2]. - The CPI data is seen as a critical indicator for the Federal Reserve's policy direction in the coming months, particularly for the new chair, Kevin Walsh, who may face challenges if inflation exceeds expectations [2]. Group 3: Technical Analysis - The 4-hour chart indicates a strong return of buying power, with the 20-period Simple Moving Average (SMA) successfully crossing above the 100 and 200-period SMAs, establishing a bullish short-term trend [3]. - Key support is identified at approximately $5035.86 per ounce, while immediate resistance levels are at $5092.00 and $5598.25 per ounce [3]. - The daily chart shows that while gold briefly surpassed $5092 per ounce, it has not achieved a sustained breakout, although the overall trend remains positive with prices above all moving averages [3].

Core Insights - The U.S. PCE price index for June increased by 2.6% year-on-year, marking the largest growth since December 2024, and exceeding the expected value of 2.5% and the previous value of 2.3% [1] - The core PCE price index for June rose by 2.8% year-on-year, the highest increase since February 2025, also surpassing both the expected and previous values of 2.7% [1] - Real personal consumption expenditures (PCE) in the U.S. grew by 0.1% month-on-month in June, aligning with expectations [1] Economic Indicators - The acceleration in inflation rates contrasts with minimal growth in consumer spending, highlighting a divergence among policymakers regarding the interest rate path [1]