GOLD - A retest of trend support ahead of a rally Gold vs US DollarICMARKETS:XAUUSDRLindaXAUUSD is forming a correction toward its trend support level ahead of two key events on Friday: the U.S. inflation report and U.S.-Iran peace talks in Pakistan U.S.-Iran talks: Optimism surrounding potential progress is keeping gold from falling. CPI: A sharp spike in inflation is expected due to the energy shock. If the data reinforces “hawkish” expectations regarding the Fed rate, gold will come under pressure. If the market attributes the rise in inflation to the one-off factor of the war, this could trigger buying interest. The key scenario for growth is if the market ignores the inflation spike and negotiations offer hope for de-escalation. Technically, the price is retesting the support level of the uptrend. A long squeeze in the liquidity zone could shift the balance of power toward buyers and trigger a rise to 4800–4860. Support levels: 4700, 4660 Resistance levels: 4800, 4857 The dollar is testing support, but the reaction is weakening. A decline in the index could support the gold price. The local trend for gold is bullish, but before a possible continuation of the trend, gold may retest the liquidity zone: 4700–4660. A long squeeze could bring the market back to its senses. Best regards, R. Linda!