Gold prices rebounded on Wednesday, posting strong gains. The gains came as the US consumer price index data saw headline inflation rising modestly. On a month over month basis, headline inflation grew 0.1% in May while core CPI was also up 0.1%. Annualized inflation slowed to a pace of 1.8%, down from 2.0% in April. Energy prices dragged inflation lower.
Can XAUUSD Maintain the Current Gains?
The rebound in gold prices comes following the correction to the support at 1320. The rebound led by a reversal candlestick pattern has pushed prices close to last Friday’s highs. Still, gold remains a few points below the highs of 1341.80. A breakout above this level is required in order for the precious metal to post further gains to the upside. To the downside, the support at 1320 remains key.
