XAU/USD Holds Steady Above $3,340 as Traders Await Key US CPI Report

Date: May 14, 2025
Instrument: XAU/USD (Gold)
Current Price: $3,343

Market Summary:
Gold (XAU/USD) is trading with a cautious tone on Wednesday, hovering near $3,340, as investors position themselves ahead of the highly anticipated U.S. CPI data later today. The yellow metal has been consolidating between $3,330 and $3,360, following last week’s aggressive rally driven by safe-haven demand and ongoing geopolitical tensions in the Middle East.

🔍 Key Drivers to Watch Today:

🧾 US Retail Sales (Thursday, May 15):

• Retail sales will provide additional confirmation of consumer resilience or weakness, which can further shape Fed rate expectations.

🌍 Geopolitical Risk Premium:

• Ongoing uncertainty in Eastern Europe and the Middle East continues to support gold’s safe-haven appeal, though recent easing of tensions has reduced immediate upside momentum.

📊 Technical Snapshot:

• Resistance Zones: $3,360 / $3,375
• Support Levels: $3,330 / $3,315
• On the 4H chart, Gold is forming a symmetrical triangle, often a sign of imminent breakout. A strong close above $3,360 could open doors toward $3,400, while a break below $3,330 may invite selling pressure toward $3,300.

💡 Market Outlook:

Gold remains fundamentally supported, but today’s US RETAIL SALES is the key trigger. Volatility is expected to spike in the second half of the day. Traders should exercise caution and wait for confirmation before entering large positions.

⚠️ Disclaimer from Spider Capital Investment Limited:

This analysis is intended for informational and educational purposes only. It does not constitute investment advice or a trading recommendation. Financial markets carry risk, and you should conduct your own research or consult with a qualified professional before making any trading decisions.