Idea for XAUUSD / GOLD

https://www.tradingview.com/chart/pLX3WFYY/?symbol=EIGHTCAP%3AXAUUSD

1. Fundamental Background:
- Positive News: Gold (XAU) has surged to 2424 amid favorable news. Buyers are returning, anticipating further declines in the US dollar due to imminent interest rate cuts.
- CPI Report: June's Consumer Price Index (CPI) indicates a significant easing of inflationary pressures, with annual inflation falling to 3%—the lowest rate in a year. This provides evidence to the Fed that inflation is easing.
- PPI Focus: Traders are now focusing on the Producer Price Index (PPI) report. Favorable data from PPI could reinforce fresh selling in the US dollar, potentially triggering a rise in gold prices. However, remember that news events can be unpredictable in trading.

2. Technical Levels:
- Resistance Levels: Key resistance levels for XAU/USD are at 2411, 2416, and 2424.
- Support Levels: Important support levels to watch are 2396, 2392, and 2385.

3. Technical Analysis:
- Technically, there's a possibility of a small correction after a false breakdown of resistance. This correction might lead to testing the imbalance zone before the next upward move, especially if the fundamental background remains supportive after the PPI report.