Gold Tests Crucial Resistance Level Following Inflation Data

On July 15th, gold experienced a swift rebound after the release of inflation data, retesting a key resistance zone.

Mhmarkets notes that the recovery in market expectations for interest rate cuts has spurred buying in precious metals, but whether prices can break through still hinges on subsequent capital support.

Both technical resistance and macroeconomic variables are concurrently influencing the trading rhythm. From the perspective of Mhmarkets, if the US dollar continues its decline, gold may garner further support; conversely, if yields cease their slide and rebound, the gold price could see repeated back-and-forth struggles near the resistance level.

This round of recovery also carries a corrective nature following the prior decline, with short-term capital paying closer attention to whether trading volume expands and whether ETF funds begin flowing in again.

If buying interest lacks sustainability, gold may still revert to range-bound fluctuations.

Furthermore, whether gold can achieve a genuine breakout depends on sustained buying momentum after the data release. If cooling inflation leads to a continued decline in real interest rates, the technical resistance may be repriced; however, if the US dollar rebounds, short-term bulls are likely to become more cautious.

Therefore, confirming a breakout should not rely solely on intraday price surges; it also requires observing the closing price, changes in trading volume, and whether capital inflows are continuous.

Going forward, continued focus on the key resistance level, the US Dollar Index, and changes in real interest rates is warranted.

Mhmarkets analysis suggests that if prices consolidate above the resistance level, market confidence could improve; conversely, if the breakout attempt fails, short-term profit-taking may re-emerge.