Gold steadies in $4,500-$4,900 range after US CPI

Gold remained confined to a $4,500-$4,900 trading range on Tuesday after a hotter-than-expected US consumer price index report pushed the dollar higher and reduced appetite for risk assets. The US inflation surprise arrived in the morning and market participants turned attention to a three-day diplomatic summit between former President Donald Trump and Chinese President Xi Jinping that begins this week.

The CPI print prompted an early pullback in stocks and cryptocurrencies and initially pressured some metals that had rallied the prior day after stronger Chinese inflation data. Intraday losses for gold were smaller than those for the Nasdaq and major crypto tokens. Trading volumes were subdued as investors awaited developments from the US-China talks.

Technical indicators show support between $4,500 and $4,900 on the weekly chart. The current weekly candle resembles a bullish hammer and weekly momentum measures have started to tilt higher. On the four-hour chart, a rebound after the CPI release formed a bullish engulfing pattern. On the one-hour chart, gold was trading above $4,700 and the 50-hour moving average; a sustained move below $4,650, near the 200-hour moving average, would increase downside pressure toward the bottom of the range.

Key price levels cited by market technicians include intraday resistance near $4,780 and range resistance at $4,850-$4,900. A rise above $5,100 would represent a larger upside test, while the record high stands at $5,602. On the downside, traders noted a momentum pivot at $4,650-$4,700, deeper support at $4,500-$4,550 and major support in the $4,350-$4,400 area.

Elior Manier, a market analyst, described gold as ‘building a solid technical foundation for a possible longer-term rally.' He added that headline-driven volatility is likely while the diplomatic talks and economic releases are unfolding.

Other market drivers included a modest rise in crude oil and earlier gains in copper, platinum and silver after Chinese inflation reached a 45-month high. Those regional inflation figures had supported metals across the market before the US CPI report.

Analysts and traders noted that hotter US inflation tends to lift nominal yields and the dollar, which can pressure dollar-priced gold, while heightened diplomatic or economic uncertainty can increase demand for bullion. The Trump-Xi summit is expected to influence global risk appetite and commodity flows over the coming 72 hours, and market participants are positioned for headline-driven moves that could determine whether gold breaks out of its current consolidation or resumes a broader correction.