#GoldTechnical Analysis#24K99 News On Wednesday (March 12), in the early European market, spot Gold maintained a moderate increase during the day, with the current price around $2917 per ounce. Investors are waiting for the USA CPI data. FXStreet senior Analyst Dhwani Mehta wrote an analysis of Gold price trading.

Mehta stated that in the early morning of Wednesday, Gold prices cautiously traded above $2900 per ounce, as buyers weighed the Global tariff war while preparing for the highly anticipated USA CPI data.

Investors need to pay attention to whether Gold prices can defend the 21-day moving average of $2910 per ounce after the USA CPI data is released.

Due to the weakening dollar and concerns about economic slowdown caused by the tariff war, spot Gold closed sharply up $26.38 on Tuesday, an increase of 0.91%, at $2915.57 per ounce.

At 20:30 Beijing time on Wednesday, the USA Consumer Price Index (CPI) report for February will be released. This is the most crucial economic data of the week and may provide clues about the future trend of interest rates in the USA.

Authoritative media surveys indicate that the USA February CPI is expected to rise by 0.3% month-on-month and grow by 2.9% year-on-year. More importantly, regarding core data, the survey shows that the USA February core CPI is expected to increase by 0.3% month-on-month and grow by 3.2% year-on-year.

Mehta stated that the rebound in the dollar and USA Treasury yields seems to have suppressed the rise in Gold prices. However, if the overall CPI and core CPI data in the USA are lower than expected, prompting the Federal Reserve to continue cutting interest rates this year, Gold buyers may re-enter the market. In this case, the dollar and USA Treasury yields may face new pressure, pushing Gold prices higher.

However, Mehta warned that if the USA inflation data unexpectedly rises, Gold prices could reverse their previous rebound and fall further. Unexpectedly hot CPI data might increase the credibility of the Federal Reserve's cautious expectations regarding inflation and interest rate cuts, which would have a negative impact on Gold prices.

Mehta reminded that the trade war and geopolitical risks remain the focal point of market attention, making any impact of USA inflation data on Gold prices temporary.

Latest Gold Trade Analysis

Mehta pointed out that Gold prices closed above 21 on Tuesday.simple moving average(Currently at $2910/ounce) providing new hope for buyers with more upward space.

14thRelative Strength Index (RSI) Remains strong above 50, proving that the Call potential is reasonable.

Mehta stated that if buyers maintain above the 21-day moving average of $2910 per ounce after the USA inflation data, then the high point of $2930 per ounce on February 26 will be their next target.

If Gold rises further, the gold price will aim for the historical high of $2956 per ounce, followed by the round number level of $2970 per ounce.

(Spot Gold daily chart Source: FXStreet)

On the other hand, Mehta added that if the hot USA CPI data triggers selling pressure, then Gold prices short-term.Support.The low point yesterday is 2880 USD/ounce. If Gold prices fail to hold above this level, it will open the door to test the psychological barrier of 2850 USD/ounce.

In the event of further declines in Gold, prices may challenge the static Resistance of 2835 USD/ounce.

At 16:12 in Peking, spot Gold is reported at 2916.94 USD/ounce.