Gold Eyes Fresh Breakout as US CPI and Iran Risks Drive Market Focus

Gold trades at 4701.50 at the time of writing with a 3.30% gain over the last seven days.Price has entered a phase of upside consolidation above the $4,700 level on Tuesday, having reached its highest levels in three weeks at around $4,775 in the early Asian hours. Gold bulls now await the US Consumer Price Index (CPI) data for the next push higher.

Source:Coincodex

Gold Eyes $4,800 Breakout Amid Market Consolidation

Gold prices remain trapped in a consolidation phase as traders wait for stronger market direction. The Relative Strength Index (RSI) still shows a bullish trend, although momentum has flattened in the short term. During early Asian trading, gold broke above the 50-day Simple Moving Average (SMA) near $4,769 and climbed to around $4,773.4, bringing the key psychological resistance at $4,800 into focus.

On the downside, immediate support sits at $4,700, followed by the 20-day SMA near $4,694. A break below these levels could push prices toward the May 4 low around $4,500.

Despite the sideways movement, the broader bias remains bullish, with traders favoring buy positions while closely watching developments surrounding Iran tensions and fresh comments from president Donald Trump, which could drive further volatility in gold markets.

Source:X

Trump Warns Iran Ceasefire Hanging by a Thread

U.S. President Donald Trump said the proposed Iran ceasefire is on “massive life support” after dismissing Tehran’s response to a U.S.-backed peace plan as a “piece of garbage.” His remarks raised fears that tensions in the Gulf region could escalate again following weeks of indirect negotiations.

Iran responded by warning that its military is fully prepared to counter any “act of aggression.” Iranian officials maintained that their demands including sanctions relief, resumed oil exports, and recognition of sovereignty over the Strait of Hormuz are justified.

Oil prices stayed elevated amid concerns that renewed tensions could disrupt supplies through the Strait of Hormuz, a vital route for global crude shipments. Rising energy prices have also limited gains in gold, as investors fear persistent inflation could force the Federal Reserve to keep interest rates higher for longer, reducing demand for non-yielding assets like bullion.

Gold on Edge Ahead of Key US Inflation Data

Gold prices slipped after two straight days of gains as traders took profits ahead of the crucial U.S. CPI inflation report.Markets also remain cautious as hopes for a U.S.-Iran peace deal continue to fade before the planned meeting between Donald Trump and Xi Jinping.

Trump said the Iran ceasefire is “on life support,” while reports suggest he is considering renewed military action. Iran also warned its forces are ready to respond to any aggression.

Rising tensions have pushed oil prices higher, increasing inflation concerns and strengthening expectations that the Federal Reserve could keep interest rates elevated, limiting gains in gold.

Markets are now focused on the U.S. core CPI report. Stronger inflation data could boost the dollar and pressure gold, while softer figures may revive hopes for Fed rate cuts and support bullish  prices.