Gold trades below $4150 after upbeat US CPI data. Demand for safe-haven assets decreases. After hitting an intraday low of $4130, it’s currently hovering near $4154.
Driven mainly by the Iran war oil shock, which sent energy prices up 17.9% year-over-year and gasoline costs up 5.4% for the month, US consumer inflation shot to 4.2% year-over-year in May 2026, the highest level in three years and the first time above 4% since 2023. Core CPI rose to 2.9%, which is still much higher than the Fed's 2% target. This shows that a long pause is likely. Markets price a 98% chance that rates will stay the same in June and push the first cut to 2027 as real wages decreased by 0.7%. The data points to a period of dollar strength, high Treasury yields, and selective risk-asset pressure—crypto and tech equities suffer from persistently high rates while energy and inflation hedges clearly benefit from a geopolitical cost-of-living crisis with little sign of ending.
|
Technicals |
CMP -$4474 |
Trend |
|
|
4- Hour chart |
Value |
|
|
|
55 EMA |
$4394 |
CMP < 55 EMA |
Bearish |
|
200- EMA |
$4534 |
CMP < 200- EMA |
Bearish |
|
365- EMA |
$4604 |
CMP < 365 EMA |
Bearish |
Major support-$4400/$4350/$4000. Major bearishness below $4000. Any violation below targets $3605/$3000/$2800.
|
Momentum indicator (4-hour chart) |
Inference |
Value |
|
CCI(50) |
Bearish |
-192 |
|
ADX |
Bearish |
Strength increased from 30.24 to 36.53 |
It is good to sell on rallies around $4168-70 with SL around $4225 for a TP of $4000/$3600.
