Technical analysis by Gwen_Humuna about Symbol PAXG on 12/13/2023

Gold prices traded within a narrow range during the Asian session on Wednesday, hovering around $1,980, just above the three-week low touched on Monday. The precious metal saw a slight increase on Tuesday after the U.S. released consumer inflation data. Gold prices remained relatively unchanged on Tuesday, with XAU/USD fluctuating around $1,980.00. The U.S. Dollar started the day with a subdued tone as improved Asian stock market performance prompted investors to move away from safe-haven currencies. However, investors remained cautious ahead of the U.S. Consumer Price Index (CPI) announcement. The report met expectations, showing a 0.1% increase in the monthly CPI and a 3.1% year-on-year CPI, slightly lower than the previous 3.2%. Finally, the core annual measure stood at 4%, aligning with expectations and October's figures. XAU/USD reached its intraday high at $1,996.68 in immediate response to this news, but the Greenback quickly changed direction, cutting losses due to inflation. Investors are trying to anticipate the Federal Reserve's (Fed) monetary policy stance. The central bank will make its announcement on Wednesday, and investors expect them to keep interest rates unchanged for the third consecutive meeting. What investors are looking for is clues about when policymakers will reverse the significant rate hikes and start cutting rates throughout 2024. Stable inflation partly weighs on the rate-cutting outlook, causing short-term concerns and benefiting the USD.