Gold is showing a mildly bullish sentiment today, continuing to hold onto the gains from recent days. The price is currently oscillating around the $3,350-$3,370 range, underpinned by a broadly weakening US Dollar. The market is still digesting yesterday’s US inflation data, which was in line with expectations and has heightened speculation of an upcoming Federal Reserve rate cut in September. This is providing a strong tailwind for gold. The overall outlook for today remains cautiously bullish, with a potential for further upward movement should new data or a sustained weakening of the dollar provide a catalyst.

Changes to Weekly Outlook

The weekly outlook, which was already leaning bullish, has been solidified by recent developments. The release of US inflation data, showing only a slight increase, has intensified the market’s expectation of a September rate cut from the Federal Reserve. This has put significant bearish pressure on the US Dollar Index (DXY), which is a key driver for gold. The shift in monetary policy expectations has reinforced the bullish case for XAUUSD, as lower interest rates typically decrease the opportunity cost of holding non-yielding assets like gold. The key technical support level identified in the weekly scan has been tested and held, further supporting the bullish narrative.