Gold maintaining a solid uptrend

<Fundamental>
The strong dollar is currently preventing gold prices from surpassing the critical 2695 resistance level. Nevertheless, gold prices are on a steady upward trajectory, driven by a strong demand for safe haven as investors flock to gold.

This week, the direction of gold prices will hinge on the December CPI data. Markets anticipate that the CPI (YoY) will rise to 2.9% in December, up from 2.7%. Should inflation numbers exceed expectations, it could significantly dampen the Fed's willingness to cut interest rates. It is crucial to recognize that CPI results above market consensus may prompt a surge in the dollar, likely resulting in a decline in gold prices.


<Technical>
After testing the resistance at 2695, XAUUSD returned some gains and retreated to 2671. However, XAUUSD sustains a solid uptrend within the ascending channel, awaiting further price triggers. If XAUUSD breaches above the channel’s upper bound and the resistance at 2695, the price may gain upward momentum toward 2725. Conversely, if XAUUSD breaks EMA78 and the channel’s lower bound, the price may fall further to the support at 2635.