On Track For Best Week Since April

Gold remains steady in the Asia-Pacific session, following a relatively unchanged closing on Thursday. This occurred despite the US dollar dropping below 100 for the first time since April 2022 and a significant rally in US Treasury yields. Nevertheless, bullion is on track to achieve its best week since April, as investors solidify their belief that the Federal Reserve is nearing the end of its interest rate hikes, supported by recent US data indicating a slowdown in inflation.

• Some traders are now cautioning about the potential for disinflation, considering the cooler-than-expected US CPI and PPI figures released this week.
• Gold's recent gains indicate a turnaround from the loss of momentum experienced in June, which was fueled by successive reports suggesting elevated price pressures.
• Having previously cleared resistance at the 50-day EMA, resistance is next eyed at $1968.0 (Jun 16 high), according to MNI’s technicals team. Key resistance has been defined at $1985.3, the May 24 high where a break would highlight a stronger reversal. The key support and the bear signal is at $1893.1, the Jun 29 low. Initial support is at $1931.70, the 20-day EMA.