💸 Product: XAU/USD 📈 Prediction: Increase Fundamental Analysis: Gold prices are holding steady as traders await the U.S. CPI figures for clues on the Federal Reserve's rate-cut strategy. As key data approaches, the expectations for the Fed's easing cycle, reduced USD demand, and a cautious market mood are likely to support XAU/USD. On Tuesday, gold extended its recovery, trading around $2,513 per troy ounce during the mid-U.S. session. Markets became risk-averse ahead of important events, strengthening the U.S. Dollar against most currencies, except safe havens like gold, the Swiss Franc, and Japanese Yen, which posted slight gains. There hasn't been a specific reason for the cautious sentiment, but traders are wary ahead of the U.S. Consumer Price Index release on Wednesday and the European Central Bank policy decision on Thursday. While easing price pressures are expected, inflation remains above the Fed's 2% target. The Fed is likely to announce a 25 basis point rate cut next week. Technical Analysis: The daily chart for XAU/USD shows a neutral-to-bullish outlook, with the pair attracting intraday buyers near the bullish 20 Simple Moving Average. However, technical indicators lack clear direction, as the Momentum indicator hovers around the 100 line and the Relative Strength Index consolidates around 58. The 100 and 200 SMAs are rising but remain well below the current price, limiting bearish potential. In the near term, the 4-hour chart also indicates a neutral stance. XAU/USD is trading above its 20 and 100 SMAs, with the 200 SMA far below. Technical indicators are flat, and the RSI at 56 suggests bears are not interested in gold.