Product: XAU/USD (Gold against the US Dollar) Prediction: Decrease Fundamental Analysis: - Gold prices fell by 0.9% on Wednesday after U.S. inflation data showed a decrease in inflation for July. - Despite this drop, gold is still close to its record high from last month and has risen by 19% this year due to expectations of easier monetary policies and increased central bank gold purchases. - The U.S. dollar strengthened against other currencies after the data, making gold more expensive for non-U.S. dollar holders. - The yield on the 10-year U.S. Treasury bond also rose significantly. Technical Analysis: - The daily chart shows XAU/USD trading within its usual range but forming a lower high and lower low, a bearish sign. - Technical indicators have slightly declined but remain positive, so a significant drop is less likely. - Gold prices are above all key moving averages, with the 20-day SMA flat and above the 100 and 200-day SMAs. Overall, a sharp decline seems unlikely.