●Market Watch: Gold consolidates near $2,Ethereum price prediction180 zone ahead of pivotal inflation report
●Core CPI projections could trigger dollar weakness, creating favorable conditions for precious metals
●Recent Fed commentary and technical indicators reveal gold's dual sensitivity to monetary policy and macroeconomic data
The gold market exhibits remarkable composure during Tuesday's trading session, with XAU/USD hovering around the $2,180.60 level as investors position themselves ahead of February's inflation data release. Market consensus anticipates unchanged headline CPI figures, while core inflation metrics are projected to show modest cooling - a scenario that typically pressures the US Dollar while supporting gold valuations.
Last week's trading activity saw the precious metal challenge historic peaks, briefly touching $2,195.15 following Federal Reserve Chair Jerome Powell's congressional testimony. The central bank chief acknowledged moderating price pressures while maintaining the Fed's data-dependent stance, emphasizing no immediate urgency to implement rate reductions despite growing confidence in the inflation trajectory.
Macroeconomic Drivers: Labor Market Shifts and Rate Expectations
●Recent employment data revisions reveal a cooling US labor landscape, with cumulative adjustments showing 167,000 fewer positions than initially reported across January and February. These developments have prompted reevaluation among interest rate futures traders.
●Current market pricing, as reflected in the CME FedWatch Tool, shows modest 22% probability for May rate adjustment, with June expectations standing at more substantial 69% likelihood.
●February's inflation metrics are projected to show monthly core CPI deceleration from 0.4% to 0.3%, with annual core inflation potentially easing from 3.9% to 3.7%.
●Federal Reserve officials consistently emphasize their commitment to achieving 2% inflation target, making Tuesday's CPI release particularly consequential for monetary policy expectations and gold's near-term trajectory.
●Rebounding Treasury yields present modest headwinds, with 10-year note rates adding two basis points to 4.094% during the session.
Technical Perspective: Bullish Momentum Meets Overextended Conditions
Gold's technical landscape presents mixed signals as the metal consolidates near historic peaks. While the Relative Strength Index (RSI) registers overbought conditions above the 80 threshold, its upward trajectory suggests sustained buying interest. A decisive break above the $2,195.15 record could open path toward psychological $2,200 resistance.
Conversely, failure to maintain current levels might invite corrective pressure, with initial support emerging near March 8th low of $2,154.17. Subsequent downside targets include the $2,150 psychological level, followed by stronger support zones around $2,100 and the late-December peak at $2,088.48.
