Gold has recovered after U.S. inflation data fell short of expec

• Gold prices (XAU/USD) are experiencing a significant drop, particularly after hitting a historic peak of around $2,685-$2,686 on Thursday. This decline is mainly due to increased buying of the U.S. Dollar, which weakens demand for gold, as well as market optimism driven by new economic stimulus measures from China.
  

• Nevertheless, expectations of more dovish policy from the Federal Reserve have kept the USD stable within a familiar range over the past two weeks. This, along with concerns about escalating geopolitical tensions in the Middle East, may limit the losses for gold prices. Traders seem to be waiting for the release of the U.S. Personal Consumption Expenditures (PCE) price index, which could impact gold price trends in the near future.
  

• The recent breakthrough through the short-term uptrend channel indicates that the price of gold is likely to rise. However, investors should wait for some consolidation or a minor pullback before expanding their positions.
  

• If there is a significant drop, it could present a buying opportunity around the $2,625 level, helping to limit declines toward the $2,600 mark. If $2,600 is breached decisively, it could lead to notable further declines.
  

Buy Zone: 2638 - 2636
SL: 2632
TP1: 2645
TP2: 2655

Sell Zone: 2663 - 2665
SL: 2669
TP1: 2655
TP2: 2645

Sell Zone: 2684 - 2686
SL: 2690
TP1: 2675
TP2: 2665