Gold Consolidates Around $2,900, Downside Risk Increasing

Gold continues to fluctuate around the $2,900 level, reflecting market caution ahead of the U.S. CPI data. After reaching an all-time high, XAU/USD has entered a consolidation phase, but the current price pattern suggests a potential decline in the near term. Concerns over global trade wars and geopolitical risks continue to support gold; however, anticipation of signals from the Fed and the strength of the U.S. dollar may put downward pressure on prices.

On the 4-hour chart, the price has fallen out of the ascending channel and is currently testing a key resistance level at $2,935. If the price fails to break through this zone, selling pressure may increase, driving gold down toward the support level at $2,852.